Pensions and furlough

Employers must continue to pay pension contributions for furloughed employees. The government’s Coronavirus Job Retention Scheme (CJRS) did not change or remove employers’ or employees’ obligations to make pension contributions.

If employees have a contractual right to employer pension contributions beyond the statutory minimum required under pensions auto-enrolment (3% of qualifying earnings), this can only be changed by agreement.

Until 1 August 2020, employers were able to claim minimum pension contributions under the CJRS. However, this ceased to be the case for claim periods starting on or after 1 August.