Chancellor Rishi Sunak has provided a Coronavirus Job Retention Scheme, furlough contribution update.
From September 2020, Employers will see the current HMRC furlough contribution change from 80% down to 70%. This will reduce again in October to 60%.
The ‘Coronavirus Job Retention Scheme’, referred to by many as ‘furlough’, was created by the Government in March 2020, in a bid to support businesses to retain as many jobs as possible through the Coronavirus pandemic.
The scheme meant HMRC would support businesses financially by initially contributing 80% of an employees wage to a maximum of £2,500 per month. However there have been several updates in the weeks following, including strict processing procedures and eligibility.
In the most recent update (2nd June 2020), the Chancellor has also announced Employers will recommence paying national insurance and pension contributions from August.