Although the Coronavirus Job Retention Scheme (CJRS) winds up completely on 31 October 2020, there have already been a number of changes to the scheme, phased in since July.
The current claim level of 80% of a furloughed worker’s salary or wage or £2,500 per month for claims reduces to:
- The lower of 70% or £2,187.50 (pro-rated if an employee is also working part-time after 01 July 2020) in September 2020.
- The lower of 60% or £1,875 (pro-rated if an employee is also working part-time after 01 July 2020) in October 2020.
Since 31 July, claims for the employer statutory minimum pension contribution for furlough salaries are no longer being met.
Under the rules of the CJRS, if a furloughed employee is not working part-time, the payroll should run as normal on this amount of pay in September and October. Pension contributions should be calculated and paid across on this amount of pay.
If an employer has chosen to top up furloughed employees’ pay or they are working part-time during the furlough period, the payroll should run as normal using the total amount of pay.
Various exceptions will apply, including:
- Active members in defined benefit pensions.
- Schemes certified under set 1,2 or 3 criteria.
- If the employer contribution rate is higher than 3%.
- Non-contributory schemes.
- Salary exchange schemes.
All automatic enrolment duties for furloughed employees apply as normal.
This includes enrolment, opting-in, maternity and redeclaration.
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