And from September, employers will need to contribute 20 per cent of their furloughed workers' pay, with the remaining 60 per cent covered by the scheme, which will then end in October. Employers will continue to pay employer national insurance and pension contributions.
The government is now paying 80% of workers' salaries up to £2,500 a month for 8.4 million workers under the furlough scheme.
"Plans to save millions of furloughed workers from the scrap heap and retrain them will be a centrepiece of the address to MPs, which is pencilled in for the week beginning July 6", the newspaper said.
From September, they'll also need to pay 10 per cent of your salary, with the government covering the remaining 70 per cent. Employers will not be able to reclaim under the CJRS for payments made in respect of time spent working but will still be able to reclaim under the CJRS for employees" "normal' hours that are not worked. Obviously, the employer will need to pay in full for those days or hours that the employee actually works even if they are being paid less for the furloughed days.
Pensions and Lifetime Savings Association (PLSA) director of policy and research, Nigel Peaple, added: "Since the introduction of the Coronavirus Job Retention Scheme, the Treasury has given vital support to furloughed workers' pension contributions that have no doubt eased financial hardship and anxiety for the millions affected".
All claims for reimbursement under the current JRS (ie for the period to 30 June) must be submitted by the end of July.
"As before, employers can still opt to top up an employee's salary over and above the 80% if they wish".
The Theatres Trust, a national advisory public body for theatres, today warned that these modifications to the scheme (whereby employers have to pay a small part of furloughed employee salary as well as National Insurance contributions and pensions) "will make redundancies throughout the sector inevitable" and may "close theatre businesses", with 70 per cent of United Kingdom venues already stating that they'll run out of money by the end of 2020.
When claiming the CJRS grant for furloughed hours, you will need to report and claim for a minimum period of a week. Applications for the first grant close on 13 July 2020.
The working arrangements that are agreed should cover at least one week and be confirmed to the employee in writing. "Further guidance regarding flexible furloughing is expected to be published on 12 June 2020".
The scheme allows employers to furlough their employees with the guarantee that the government will pay 80 per cent of their wages, up to £2,500 a month, as well as their National Insurance and pension contributions. "If not, I am afraid that there will be business closures and redundancies - and potentially a supply problem for recovering high-street hospitality outlets".
The situation gets more complicated from August onwards, however, which is when employers will be asked to start contributing more, regardless of whether they hire employees back part-time or not. Employers may already be paying the 20% balance to employees and this would continue in accordance with any agreements reached with employees.
"We can not emphasise the importance of planning ahead wherever possible enough, particularly now employers have a much clearer idea of what the CJRS will look like going forward, when they will be required to start paying non-reclaimable monies to employees under the scheme and when it will end".