Government contributions for workers on the job retentions scheme will fall again from this month, as the Chancellor prepares to axe support for good this autumn.
From today, the Treasury’s support will drop from 70% to 60%, prompting employers to start paying a minimum of 20% per employee, plus national insurance and pension contributions on top.
It’s part of a scale back of the scheme before it’s wound down for good this autumn, alongside the closure of the fifth SEISS grant for self employed workers.
From August 1, employers will have to pay 20% of wages for staff on furlough. That contribution level will continue until the scheme ends at the end of September, the Treasury said.
Under the changes, the government will contribute 60% of wages up to a maximum cap of £1,875 for the hours the employee is on furlough.