CJRS guidance from 1 May 2021: Get the details rightby
Kate Upcraft digs into details of the CJRS scheme extension from 1 May 2021 to 30 September 2021 and uncovers a new round of calculation challenges.
The new guidance includes how to calculate furlough pay for newly eligible employees who could not claim from 1 November 2020 but were reported on a Full Payment Submission by 2 March 2021. So a claim can be made for the first time for any period 1 May 2021 onwards.
Up to and including 30 June 2021 you can claim, and must pay the employee, 80% of their reference pay for the furloughed hours subject to the monthly, daily or weekly cap.
From 1 July 2021 the scheme will taper off, with employers making a 10% contribution to wages in July, and 20% in August and September. The employee though must still receive the full 80%. A worked example of a July 2021 claim showing the taper can be found here and in example 3.21 here.
Calculate how much you can claim
The key points from the new Calculate how much you can claim guidance are:
As previously you have the choice to calculate the CJRS grant across more than one pay period within a calendar month, or you can continue to claim for each pay period.
- If you’re claiming for a full month then use the £2,500 monthly wage cap
- If you’re claiming for any full weeks within a claim ie 1, 2 or 4 week pay frequencies, then use the £576.92 weekly wage cap
- For any other pay frequency, or a claim length that isn’t exact weeks, use the following maximum day rates multiplied by the number of calendar days in the pay period: see example 3.1 here. The maximum day rates are:
- £83.34 for April, June and September
- £80.65 for May, July and August
You are reminded that if an employee has had a pay increase/decrease this will not affect the reference pay that is used to calculate the grant and which must be passed on to the employee.
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