Chancellor outlines details for extension to Job Retention scheme

Chancellor Rishi Sunak has outlined details of the extension to the Coronavirus Job Retention scheme today.

The scheme at present allows businesses to keep salaried staff contractually employed, but not working, while the government pays 80% of their incomes.

In June and July, the scheme will continue as before, however from August, employers will be asked to pay National Insurance and employee pension contributions. In September, employers will then pay 10% of the wages, which will then rise to 20% in October.

Workers will be allowed to return to work part-time from July, but companies will then have to pay 100% of wages.

The initial scheme was intended to run until the end of July, however earlier this month the Chancellor extended the scheme until the end of October.

Under the new amends, furloughed workers will continue to get 80% of pay until the end of October. However, by this time, almost a quarter of their salary will have to be paid by employers.

For more information about the Coronavirus Job Retention Scheme, click here.