There has been new detailed guidance released regarding the CJRS.
https://www.gov.uk/guidance/calculate-how-much-you-can-claim-using-the-coronavirus-job-retention-scheme
For salaried employees:
Work out reference point:
- If your employee was on the payroll on 19 March 2020, your employee's reference point is the last pay period ending before or on 19 March 2020.
- If an employee was employed after 19 March 2020 but has been on a furlough claim before the period to 31 October 2020 – their reference point is their last pay period.
- For employees who have been employed after 19 March 2020 and have not been included on a furlough claim up to 31 October 2020 – their reference point is their last pay period before or on 30 October 2020.
To calculate furlough wage:
- Take salary earnings as at reference point (worked out from steps above)
- Divide by total number of days in pay period
- Multiply by number of furlough days in pay period
- Multiply by 80%
For varied pay employees:
For employees on your payroll on 19 March 2020 or have been included on a furlough claim period up to 31 October 2020 - calculate 80% of the higher of:
- A Wages earned in the same month last year – (If your employee did not work in the corresponding month last year then you must use average monthly wages method)
- B Average monthly wages for the 2019/20 tax year
For employees who have been employed after 19 March 2020 and have not been included on a furlough claim up to 31 October 2020:
- C Calculate 80% of the average wages between 6 April 2020 and the day before being furloughed
A To calculate 80% of wages earned in corresponding calendar period of 2019/20 tax year:
- Take amount earned in same period last year
- Divide by total number of days in pay period
- Multiply by number of furlough days in pay period
- Multiply by 80%
B To calculate average monthly wages for 2019/20 tax tear:
- Take employee earnings in the tax year up to day before first furloughed
- Divide by number of days from start of tax year (including non-working days) up to day before first furloughed, or 5 April 2020.
- Multiply by number of furlough days in pay period
- Multiply by 80%
C To calculate average wages between 6 April 2020 and furlough date:
- Take employee earnings from 6 April 2020 to first day of employee furlough on or after 1 November 2020
- Divide it by number of days employed since 6 April 2020 (including non-working days)
- Multiply by number of furlough days in pay period
- Multiply by 80%
If you have any queries regarding the calculation please contact a member of our team.