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1 October 2020

Government reduces its contribution to salaries of furloughed workers to 60%

Summary

From 1 October 2020 the government contribution to the salaries of furloughed workers through the Coronavirus Job Retention Scheme (CJRS) reduces from 70% to 60%. The government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. As in September, employers continue to pay employers National Insurance contributions (ER NICs) and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed. Employers can choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at their own expense. Employers still have to pay employees for the hours worked. The Coronavirus Job Retention Scheme will close on 31 October.

Source(s)

Gov.uk guidance