The Coronavirus Job Retention Scheme changes and workplace pensions

Posted on 23rd June 2020 by Streets - Our news

For furlough claims starting on or after 1 August 2020, employers will no longer be able to claim a grant for the statutory minimum automatic enrolment employer contributions – from this date they will need to pay for their own pension contributions and National Insurance contributions for all staff.

Through the Coronavirus Job Retention Scheme, employers will still be able to claim the lower of 80% of staff wages or £2,500 a month, reducing to the lower of 70% or £2,187.50 a month in September and the lower of 60% or £1,875 in October, with the scheme closing on 31st October.

The Pensions Regulator has provided updated guidance on these changes, along with information on how to treat furloughed workers who are returning to work part-time, what the changes mean to salary sacrifice arrangements and what to do if your company is struggling to pay contributions.

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