The Coronavirus Job Retention Scheme was due to close on 31 October 2020 and be replaced by the Job Support Scheme from 1 November 2020.
However, the Government has announced that the Coronavirus Job Retention Scheme will remain open until December 2020 and the introduction of the Job Support Scheme has been postponed.
The Government will cover 80% of furloughed employees’ wages for the hours they do not work, up to a maximum of £2,500 per month. The employer will be responsible for paying the employer national insurance contributions (NICs) and auto-enrolment pension contributions.
Employers will not be required to contribute to employees’ wage costs other than NICs and pension contributions (but they can choose to top up employees’ wages at their own expense).
The ability to flexibly furlough employees will continue, so employees will be able to work part time. Employers must pay employees in full for the hours they work.
Employers are not required to have previously used the Coronavirus Job Retention Scheme to be eligible to claim during the extended period.
All employers with a UK bank account and PAYE scheme will be eligible.
Employees are eligible to be furloughed under the extended scheme if they were on the employer’s payroll on 30 October 2020 and the employer has made a real time information (RTI) submission to HMRC in respect of the employee on or before that date.
The minimum claim period of seven consecutive days will continue to apply.
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