Government announces furlough scheme changes. What you need to know


 

July 2020

Government announces furlough scheme changes. What you need to know

From 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked.

From 1 August 2020, the level of grant will be reduced each month. To be eligible for the grant employers must pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are being furloughed.

If you stay on furlough until October, you won't see any changes in terms of how much you're paid or when, you'll still get a minimum of 80% of your normal wage.

What's changing is more a behind-the-scenes adjustment of what the state covers and what your employer has to cover. Here's a road map of how that'll work:

 

June and July: The state will continue to pay 80% of salaries, plus national insurance and pension contributions as it does now. Employers are not required to pay anything.

August: The state will pay 80% of wages, up to a cap of £2,500/mth. Employers will now have to pay national insurance and pension contributions.

September: The state will pay 70% of wages, up to a cap of £2,190/mth. Employers will have to pay national insurance and pension contributions, and 10% of wages to make up 80% of the total, up to a cap of £2,500/mth.

October: The state will pay 60% of wages, up to a cap of £1,875/mth. Employers will then need to pay national insurance and pension contributions, and 20% of wages to make up 80% of the total, up to a cap of £2,500/mth 

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