As national restrictions due to coronavirus have been lifted, from 01 August 2021, the CJRS will become less generous, and employers will be asked to contribute more towards the cost of furloughed employees’ wages.

To be eligible, you must continue to pay your furloughed employees 80% of their wage for hours not worked. However, from 01 August, the government will only be contributing 60% (up to £1,875 pcm) which means the employer is responsible for subsidising the additional 20%. Please note that employers are still able to top this wage up to 100%, although this will have to be done at their own expense.

July August September
Government contribution: wages for hours not worked 70% up to £2,187.50 60% up to £1,875 60% up to £1,875
Employer contribution: employer National Insurance contributions and pension contributions  






Employer contribution wages for hours not worked 10% up to £312.50 20% up to £625.00 20% up to £625.00
For hours not worked, employee receives 80% up to £2,500 per month 80% up to £2,500 per month 80% up to £2,500 per month


Who can be placed on furlough?

If your employee is on sick leave or self-isolating because of coronavirus, they may be able to get Statutory Sick Pay (SSP). The Coronavirus Job Retention Scheme is not intended for short-term absences from work due to sickness.

Although, if an employer wants to furlough employees for genuine business reasons and they are currently off sick, they are eligible to do so. In these cases, the employee should no longer receive sick pay and would be classified as a furloughed employee.

Finally, employers can furlough employees who are clinically extremely vulnerable or at the highest risk of severe illness from coronavirus. The decision of placing a vulnerable employee on furlough is at the discretion of the employer. The employer does not need to be closed, nor does the business need to be experiencing negative demand, to be eligible to claim for these employees.

If you have any questions about the content in this article, please contact your usual relationship Partner or Manager and we will be happy to help.