Employers who are still using the scheme are reminded that the Coronavirus Job Retention Scheme is due to end as of the 30th September 2021. However, the cost to employers of using the scheme will increase before then.
Up until the 30th June 2021 the Government are subsidising 80% of a furloughed employee's wages up to a cap of £2,500. The required employer contribution is limited to their National Insurance contributions, taxation and the employer pension contributions.
However, from the 1st July 2021 the Government will reduce its contribution to 70% of the furloughed employee's wage and then from the 1st August 2021 it reduces further to 60%. Even though the Government's contribution is reducing, the employer must pay the employee at least 80% of their wages (subject to the cap of £2,500 per month).
If you need help with planning for the end of the furlough scheme contact your BRIDGE advisor directly or call 01904 360 295 or email enquiries@bridgeehr.co.uk