We’re writing to remind you about changes to the Coronavirus Job Retention Scheme (CJRS) from 1 September and what this means for you as an employer.
From 1 September CJRS will pay 70% of usual wages up to a cap of £2,187.50 per month for the hours furloughed employees do not work.
Employers will still be required to pay furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month.
The employer will be required to fund the difference between this and the CJRS grant themselves.
The caps are proportional to the hours not worked. For example, if your employee is furloughed for half their usual hours in September, you are entitled to claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).
You will continue to have to pay furloughed employees’ National Insurance (NI) and pension contributions from your own funds.
As suspected the calculation of redundancy pay regulations have been enacted in Northern Ireland and are effective from 14th August 2020. They simply state that a redundancy payment calculation must not include any periods of furlough, i.e, the employee's average should be exclusive of the decreased furlough payments.