On 31st of October the Coronavirus Job Retention Scheme has been extended for a month. This means that employees will be further receiving 80% of their current salary for hours not worked in the office.
The Prime Minister haS announced that the government’s Coronavirus Job Retention Scheme (CJRS) - or the Furlough scheme - will be taking place until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500.
Businesses will have an option to bring furloughed employees back to work on a part-time basis or furlough them full-time. The business owner will only be asked to pay off the National Insurance and employer pension contributions. These payments are only just 5% on average of total employment costs.
To sum up:
- The extended Furlough Scheme will continue to operate as the previous scheme did. The businesses will be paid upfront to cover wages costs.
- The Coronavirus Job Retention Scheme is extended until December. This means that the government will pay 80% of wages but not more than £2,500. At the same time the employers will pay employer National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work.
- Furthermore the part-time furloughing will be allowed in addition to full-time furloughing.
If you are a business owner Persona Finance Ltd is happy to assist you with consultation on the grants available for your business. Call us 02039836664 or email
enquiries@personafinance.co.uk
For more information: https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced
