Just before the weekend, the Government released new guidance, updated existing guidance and released a policy paper on how the coronavirus job retention scheme, better known as the furlough scheme, will change from 1 July 2020. In summary, the paper outlines the following:
- As has already been reported, from 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern. Employers can then claim the pro-rata amount of the 80% of the employee’s salary (up to a maximum of £2500) based on the proportion of hours NOT worked compared to their normal working hours.
- From August, the government will continue to pay 80% up to the cap for the hours an employee is on furlough, but employers must pay NICs and pension contributions for the time they are on furlough.
- From September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours an employee is on furlough, but employers must pay NICs and pension contributions and top up to ensure employees receive 80% of their wages, subject to the cap of £2500, for the time they are on furlough.
- From October, the government will pay up to 60% of wages up to a cap of £1,875 for the hours the employee is on furlough, but employers must pay NIC’s and pension contributions and top up to ensure the employees receive 80% of their wages, subject to the cap of £2500, for the time they are on furlough.
Our podcast on this update can be found here: Employment COVID-19 Update: Employers Contribute to Furlough From Next Month