01.09.2020

Furlough Scheme

Furlough Scheme

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All the new furlough rules from September 1 - including how your pay is changing

From September 1, firms will have to start paying national insurance, pension contributions and 10% of wages as the Government reduces its contributions to 70%

It means that employers will have to pay a minimum of 10% of wages, bringing the worker's total monthly earnings to at least 80% of their salary.

The changes follow on from part-time working in July, and a new 5% contribution from August which includes national insurance and pension contributions.

From today, the Government’s grant will fall to 70% of wages, up to the value of £2,187.50.

"Another important detail that employers should be aware of is that now government contributions are beginning to decrease from this month, employers must top this up to ensure that furloughed employees still receive 80% of their wages up to £2,500.

"For example, a 70% grant up to £2,187.50 will attract a 10% top up from employers to a maximum of £312.50. 

"The current furlough scheme will be ending on 31 October, but employers still need to keep up to date with its changing structure."

 

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