Thousands of construction staff have been furloughed under the scheme which was due to end on May 31.
Chancellor Rishi Sunak confirmed the extension on Friday following the decision to keep social distancing measures in place.
The Coronavirus Job Retention Scheme allows firms to furlough employees with the government paying cash grants of 80% of their wages up to a maximum of £2,500.
Sunak said: “We’ve taken unprecedented action to support jobs and businesses through this period of uncertainty, including the UK-wide Job Retention Scheme.
“With the extension of the coronavirus lockdown measures yesterday, it is the right decision to extend the furlough scheme for a month to the end of June to provide clarity.
“It is vital for people’s livelihoods that the UK economy gets up and running again when it is safe to do so, and I will continue to review the scheme so it is supporting our recovery.”