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Changes To Furlough Pay – What You Need To Know

28th June 2021

As outlined in previous communications, the amount employers can claim in furlough pay from the Coronavirus Job Retention Scheme (CJRS) will reduce at the end of June. Below we summarise everything you need to know.

What employers can claim:

  • For periods ending on or before 30th June 2021: 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month;
  • From 1st July 2021: 70% of an employee’s standard salary for hours not worked, up to a maximum of £2,187.50 per month, and will pay the other 10% themselves;
  • From 1st August 2021: 60% of an employee’s usual salary for hours not worked, up to a maximum of £1,875 per month, and will pay the other 20% themselves.

What employers will have to pay:

  • The cost of employer National Insurance and pension contributions;
  • Holiday pay for any holiday that the employee takes (the difference between 80% and 100% of pay);
  • From 1st July 2021: the contributions set out above.

If they choose to, employers can continue to top up wages to 100%.

If you require guidance on any of these changes, please contact our HR team at hr@tc-group.com or your TC adviser on 0330 088 7111.

HR Support 
The HR client team at TC is fully qualified and trained to support clients with an array of HR matters to ensure legal compliance, to give business owners and managers peace of mind and the time to focus on the core elements of their business.

TC can offer a whole host of HR support options, including the following:

  • Telephone, video call and email support;
  • A template contract of employment and employee handbook tailored to your business;
  • Advice and support on managing absence, performance, capability, grievances and disciplinaries, managing exits from redundancy programmes to offering settlement agreements.
  • A cloud-based HR system called BreatheHR, which offers many benefits, including full GDPR compliance, HR admin, managing sickness and holiday, centralising data and collating employee documents.

If you would like to arrange a free initial consultation of your current HR practices and documentation to ensure they meet employment legislation, please contact us at hr@tc-group.com.