The Coronavirus Job Retention Scheme (CJRS) is changing from 1st October 2020. From that date HMRC will pay 60% of usual wages up to a cap of £1875 per month for the hours furloughed employees do not work.
Employers must continue to pay furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2500 per month. Employers will need to fund the difference between this and the CJRS themselves. The caps are proportional to the hours not worked so if the employee is furloughed for half their usual hours in October the employer is entitled to claim 60% of their usual wages for the hours they do not work, up to £937.50 (half of the £1875 cap)
However they must still pay the employee at least 80% of their usual wages for the hours they don't work. For someone only working half of their usual hours they would be paid up to £1250 (half of the £2500 cap) with the remaining portion funded by the employer. In addition the employer will continue to pay furloughed employees National Insurance and pension contributions from their own funds.
Keeping abreast of the changing furlough regulations can be challenging but if you need any help or advice regarding this or any other aspects of payroll please get in touch.