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Job Retention Scheme

Under the coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis. 

This applies to employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as ‘furloughed workers’. HMRC will reimburse 80% of their wages, up to £2,500 per month. This is to safeguard workers from being made redundant.

The Government will also cover employer National Insurance and minimum auto-enrolment pension scheme contributions of furloughed workers – on top of 80% of salary. 

Furloughed workers planning to take paid parental or adoption leave will be entitled to pay based on their usual earnings rather than a furloughed pay rate.

The Coronavirus Job Retention Scheme will cover the cost of wages backdated to March 1st if applicable. The Chancellor has announced that the Coronavirus Job Retention Scheme will remain open until the end of October and has set out more details on how the Coronavirus Job Retention Scheme will continue to support jobs and business as people return to work.

From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time. From August 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. The scheme updates mean that the following will apply for the period people are furloughed:

The Government have published step-by-step guidance for employers to help guide your business.

You can submit your claim for furloughed employees' pay on the Government website.

How to access the scheme

All UK-wide employers with a PAYE scheme will be eligible. Furloughed employees must have been on your PAYE payroll on 28 February 2020, and can be on any type of contract, including:

In order to access the scheme, you will need to:

You can submit your claim for furloughed employees' pay on the Government website.

Further guidance

For further information on the Coronavirus Job Retention Scheme, please read the step-by-step guidance for employers. The Government have also published guidance for employees.

For further information on the full range of business support measures which have been made available to UK businesses, visit the government's Business Support website or use the Business Support Finder tool here.