The government introduced the Coronavirus Job Retention Scheme (CJRS) in March 2020 to help businesses survive the economic impact of the pandemic. If your employer cannot afford to keep you on during the current lockdown, they can put you on ‘furlough’, and can currently claim up to 80% of your salary back, up to a maximum of £2,500 a month and can also claim employer’s National Insurance contributions on the payment, along with their minimum legal pension contribution. The amount your employer can claim back will gradually reduce from August, through to 31 October, when the scheme will close.

Inevitably, the scheme is complex, but we have put together the answers to some of the main questions you are likely to have.

The following information reflects our current understanding as of 16 June 2020 of how the scheme operates. You can also read the government’s latest guidance on the scheme here. This was most recently updated on 12 June 2020.

The following information explains what the revised CJRS means for you and your workplace pension plan.

Going on furlough is an arrangement between you and your employer, and many aspects of it may have to be agreed between you. For full details about the CJRS, please see the information on the Government’s website and speak to your employer if you have further questions about how it applies to you.

Am I still eligible to be furloughed under the CJRS?
Does my employer pay me if I’m on furlough, or do I have to claim from the government?
Will I be taxed on it?
Will I receive it on my usual pay day?
Does my employer have to pay me the extra money to make up my full salary?
Am I still entitled to holiday pay?
Will my pension contributions continue?
What is ‘Flexible Furlough’ and when will it be introduced?
Who covers my wages and employer pension contributions if I return to work part time after 1 July?
What pension contribution rates apply for if I have been flexibly furloughed?
Can I take another job while I am on furlough?
Will my commission and bonus be taken into consideration when they work out my 80%?
My employer’s already put me on unpaid leave - is it too late to go on furlough?
What if I am self-isolating?

What is ‘furlough’?

Furlough is when your employer temporarily has no work for you or can't afford to pay you but retains you as an employee.

For more Q&As about how Covid-19 could affect your pension please visit our Covid-19 Q&As page.

Or read the latest articles from our experts on how Covid-19 affects global markets and investing.