If you are taking advantage of the Government Furlough Scheme then you need to be aware of the changes that came into effect from 1st July 2021.
It is essential to continue to pay your employees at least 80% of their wages and the cap of £2,500 per month remains in place. You will continue to contribute to your employees National Insurance contributions and pension fund.
In July 2021 the Government will contribute 70% of wages for hours not worked up to the value of £2,187.50, then from August until the scheme comes to an end in September it will be reduced down to 60% up to £1,875.
This means that your contributions for July 2021 will be 10% up to £312.50 and for August and September 2021 20% up to £625.
If you choose to do so you can top up your employees pay to 100% but this will be at your own expense.
You can use the Job Retention Scheme calculator on the government website to calculate your claim.
You can use this calculator to calculate your claim for:
- employees who are not working any hours and are fully furloughed
- employees working some of their normal hours
- employees who are paid weekly, two weekly, four weekly or monthly in fixed pay periods
- employees who have returned from statutory leave i.e. maternity leave
Before you use the calculator:
You will need:
- claim start date (the day your employee was first furloughed)
- claim end date
- pay dates (when the employee receives their pay)
- dates of pay periods (the time periods that their pay covers)
- regular payment amounts
- additional payments (such as tips, discretionary bonuses, non-cash payments)
- date furlough ended, if it is not ongoing
If your employee is flexibly furloughed, you will also need:
- employee’s usual hours
- actual hours worked
- hours furloughed
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