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Furlough Scheme Changed

The Government contribution towards the furlough scheme changed as of the 1st July 2021.

From 1st July, the level of grant reduced with employers now contributing towards the cost of furloughed employees’ wages. To remain eligible furloughed employees must still be paid 80% of their wages (up to a cap of £2,500) for the time spent on furlough.

The table below shows the level of government contribution available up to September 30th 2021 when the scheme winds up.

Wage caps are proportional to the hours not worked.

Grant detailsJuly AugSept
Government contribution: wages for hours not worked
70% up to
£2,187.50
60% up to
£1,875.00
60% up to
£1,875.00

Employer contribution: employer
National Insurance contributions
and pension contributions
Yes Yes Yes

Employer contribution wages
for hours not worked
10% up to
£312.50
20% up to
£625
20% up to
£625
For hours not worked employee receives80% up to
£2,500 per month
80% up to
£2,500 per month
80% up to
£2,500 per month

Employers can choose to top up employees’ wages above the 80% total at their own expense.

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