*Furlough and National Wage Updates From 2021 Budget*
Posted on 11th March 2021 at 13:33
Here is just a quick update on two areas the furlough and national minimum wage.
Furlough
The 'Coronavirus Job Retention Scheme (CJRS) has been extended until the end of September. Under the scheme, the government will continue to cover 80% of employees’ salaries for the hours they are not working, up to a maximum of £2,500 a month.
From July however, businesses will be expected to contribute 10% of employees’ wages for the hours not worked, increasing to 20% in August and September.
|
|
MAY |
JUNE |
JULY |
AUGUST |
SEPTEMBER |
|---|---|---|---|---|---|
|
Government Contribution: Wages for Hours Not Worked |
80% up to £2,500 |
80% up to £2,500 |
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 |
Yes |
Yes |
Yes |
Yes |
Yes |
|
Employer Contribution -Wages for Hours Not Worked |
No |
No |
Yes |
Yes |
Yes |
|
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 |
80% up to £2,500 per month |
80% up to £2,500 per month |
The Chancellor has also extended eligibility to claim under the scheme. For furlough periods starting on or after 1 May 2021, employers can claim for employees who were employed on 2 March 2021, as long as a Real Time Information (RTI) submission was made between 20 March 2020 and 2 March 2021 notifying pay for that employee.
National Minimum Wage
The minimum hourly amount that every worker is entitled to be paid will increase from 1 April 2021, as follows:
|
|
Current - From April 2020 |
Future - From 1 April 2021 |
|---|---|---|
|
Workers aged 25 and over - the national living wage (applies to workers aged 23 and over from April 2021) |
£8.72 |
£8.91 |
|
Workers aged 21 to 24 inclusive (workers aged 21 to 22 inclusive from April 2021) |
£8.20 |
£8.36 |
|
Workers aged 18 to 20 inclusive |
£6.45 |
£6.56 |
|
Workers aged under 18 who are no longer of compulsory school age (workers aged 16-17 inclusive from April 2021) |
£4.55 |
£4.62 |
|
Apprentices aged under 19, or aged 19 and over but in the first year of their apprenticeship |
£4.15 |
£4.30 |
Tagged as: Budget 2021, Changes and Updates, CJRS, Essential Information, Furlough Information, Key Information, National Minimum Wage
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