2020-08-16: Remember the Job Retention Scheme is changing!

16th August 2020

From September the HMRC will only contribute up to 70% of an employees furloughed wage and reduce the monthly earning cap from £2,500 to £2,187.50.

Employers will have to top up all furloughed employees to make sure that they receive 80% of their wage and up to £2,500 if applicable

Remember employers will no longer be able to claim national insurance and pension contributions so the cost of keeping an employee on furlough will increase.

There are further changes in October 2020 when the HMRC will only pay 60% of a furloughed employees wage up to £1,875. Same as in September, employers will have to top up the rest of the furlough to 80% or £2,500 cap and will not be able to claim national insurance and pension contributions.

Make sure you know the exact cost of your furloughed employees to your business with regards to these changes.