Coronavirus Job Retention Scheme

Treasury written question – answered on 11th June 2020.

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Photo of Clive Betts Clive Betts Chair, Housing, Communities and Local Government Committee, Chair, Housing, Communities and Local Government Committee

To ask the Chancellor of the Exchequer, whether it will be mandatory or voluntary for employers to pay contributions into the furlough scheme when the Government reduces its 80 per cent contribution.

Photo of Jesse Norman Jesse Norman The Financial Secretary to the Treasury

Employer contributions will be mandatory from August for those who opt to access the Coronavirus Job Retention Scheme.

In June and July, the Government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee does not work. Employers will have to pay employees for the hours they work.

In August, the Government will pay 80% of wages up to a cap of £2,500 and employers will pay ER NICs and pension contributions for the hours the employee does not work.

In September, the Government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 10% of wages to make up the 80% total, up to a cap of £2,500.

In October, the Government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 20% of wages to make up the 80% total, up to a cap of £2,500.

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