Changes to Furlough Pay from 1 July 2021

Don’t forget the changes to Furlough Pay from 1 July 2021, when the level of grant will be reduced and you will be asked to contribute towards the cost of your furloughed employees’ wages. To be eligible for the grant you must continue to pay your furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough. Wage caps are proportional to the hours not worked.

JULY 2021
GOVERNMENT PAYS FOR HOURS NOT WORKED 70% UP TO £2187.50
EMPLOYER PAYS FOR ERS NIC AND PENSION YES
EMPLOYER PAYS FOR HOURS NOT WORKED 10% UP TO £312.50
FOR HOURS NOT WORKED EMPLOYEE RECEIVES 80% UP TO £2500

AUGUST 2021
GOVERNMENT PAYS FOR HOURS NOT WORKED 60% UP TO £1875
EMPLOYER PAYS FOR ERS NIC AND PENSION YES
EMPLOYER PAYS FOR HOURS NOT WORKED 20% UP TO £625
FOR HOURS NOT WORKED EMPLOYEE RECEIVES 80% UP TO £2500

SEPTEMBER 2021
GOVERNMENT PAYS FOR HOURS NOT WORKED 60% UP TO £1875
EMPLOYER PAYS FOR ERS NIC AND PENSION YES
EMPLOYER PAYS FOR HOURS NOT WORKED 20% UP TO £625
FOR HOURS NOT WORKED EMPLOYEE RECEIVES 80% UP TO £2500

You can continue to choose to top up your employees’ wages above the 80% total and £2,500 cap for the hours not worked at your own expense.
Click here for more details This furlough scheme is then due to close on 30th September 2021.

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