Firms with furloughed staff must now contribute at least 10 per cent of workers’ wages as the Government’s landmark Coronavirus Job Retention Scheme (CJRS) begins to wind down.
The change comes as the Treasury reduces its contribution from 80 to 70 per cent, up to a cap of £2,187.50, in line with plans to end the scheme entirely on 31 October 2020.
It means that from this month, employers are legally required to top up employees’ wages to ensure they receive at least 80 per cent of their wages up to a cap of £2,500, as well as pay employer national insurance contributions (NICs) and pension contributions.
The government contribution percentage will be reduced again in October from 70 to 60 per cent, up to a cap of £1,875, with employers required to contribute at least 20 per cent.
And then on 31 October 2020, the CJRS – which has been used by some 9.6 million workers – will be closed completely.
Business bodies, however, have called on the Government to extend the scheme to save the sectors hardest hit by the coronavirus pandemic.
Commenting on the closure of the scheme, chief executive of Make UK, Stephen Phipson, said: “The protection of key skills should be a strategic national priority as this will be the first building block in getting the economy up and running.
“Ensuring that those sectors which are at the forefront of technology and will provide the growth sectors and high-skill jobs in recovery should receive the greatest support possible.”
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