The CJRS extension – what it means for you

The Coronavirus Job Retention Scheme has been extended until the 30th September 2021 the Chancellor announced is his recent budget on the 3rd March.

The same level of grant remains payable until the 30th June 2021.

To recap, the grant you can claim is 80% of your employee’s earnings, capped at £2,500 per month, with the employer paying the employers NIC and pension costs.

From the 1st July 2021, the grant will be reduced to 70%. However, employees must still receive 80% of their wages, therefore, the employer will have to pay the 10% plus NIC and pension costs.

From 1st August 2021 until the end of the scheme, the grant will be reduced to 60% and employers pay the 20% so the employee still receives 80% of their pay.

The table below shows how this will work:

MayJuneJulyAugustSeptember
Government contribution for hours not worked80% up to £2,50080% up to £2,50070% up to £2,187.5060% up to £1,87560% up to £1,875
Employer costs for wages not worked 10% up to £312.5020% up to £62520% up to £625
E’er NIC & PensionE’er NIC & PensionE’er NIC & PensionE’er NIC & PensionE’er NIC & Pension
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