Coronavirus Job Retention Scheme – what you need to know in September and October

As the government’s ‘furlough’ scheme enters its final two months, here’s a quick recap about what you need to know about Coronavirus Job Retention Scheme payments in September and October.

From 1 September, employers will have to start contributing to the wages of furloughed employees.  In September, grants will be 70% of usual wages, but furloughed employees will continue to be entitled to receive at least 80% of their usual wages – the difference will have to be paid by employers, alongside employers’ National Insurance and pension contributions.

The government grant will reduce to 60% for all furloughed employees from 1 October, and the Chancellor, Rishi Sunak, has made it clear that October will be the final month of the scheme, with no extensions.

Employers do, however, have the opportunity to bring back furloughed employees on a ‘part-time furlough’ basis.  For example, if an employee has a normal five-day working week, the employee can work two days per week (and be paid normally by the employer), and be furloughed for three days (with the employer being able to claim for the three days of non-working time).  The working days don’t have to be the same each week, allowing flexibility according to the needs of the business.

Job Retention Bonus

Further details are expected later this month on the Job Retention Bonus – you can read what has been announced so far in our blog.  We will, of course, keep you updated when we know more.



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