Job retention scheme
Rishi Sunak has now announced the detail of the extended job retention scheme.
Employee's salary, employer's national insurance and employer's pension costs will continue to be paid at the rate of 80%, capped at £2,500, by the government.
However, employee's will not be able to join the scheme after 30th June, and if you have not furloughed them yet, you must do so before 10th June, so they have had the minimum three week furlough period by the deadline date.
From 1st July, the furlough scheme is becoming more flexible. You will be able to bring employee's back part time and cover the remainder of their salary using furlough. For instance, if a full time employee has enough work to return 2 days per week, the other 3 days can be paid through the furlough scheme at 80%.
From August, 80% of the employee's wage is still covered, but the employer will need to cover their national insurance and pension contributions.
In September, as well as the employer national insurance and pension, the employer will also need to contribute 10% of the employee’s salary, with the government paying the other 70%.
In October, the employer contribution will increase to 20%, with the government paying the other 60%.
The furlough scheme will close on 31st October.