The current rules that we all know and love of 80% of salary, up to £2,500 per month, where employers will pay employer NIC and pension contributions, are being tweaked after the 30th of June 2021.
What does this mean?
The new rules mean support for businesses in need will be gradually withdrawn over a 2 month period explained below:
- From the 1st of July – Flexible furlough continues with support of 70% of salary up to £2,187.50 per month. Employers will pay employer NIC and pension contributions and 10% of wages to make up 80% total, up to a cap of £2,500 (plus any additional pay they have chosen to make over the 80% required)
- From 1st August 2021 through to 30th September 2021: flexibility of hours continues as above with support of 60% of salary up to £1,875.50 per month. Employers will pay employer NIC and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500 (plus any additional pay they have chosen to make over the 80% required)
At the moment we haven’t been told of any changes to the plan for the Furlough scheme to end on 30th September 2021.
There have been no comments whether the £1,000 Job Retention Bonus, which was originally due to be paid in February but postponed as Furlough was extended, will be redeployed.
Please get in touch with your local AIMS Accountant to find out more information and to provide business advice.