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TIMELINE: What’s planned for furloughed workers and when?

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Rishi Sunak has updated the United Kingdom on what the next steps for the Job Retention Scheme are.

Initially from July 1, businesses will be given the flexibility to bring furloughed employees back part time.

However, more will change over the coming months as the Chancellor and the Treasury work to kickstart the economy.

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The scheme updates mean that the following will apply for the period people are furloughed:

June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.

August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.

September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.

October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.

Employers will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.

Employees who believe they are not getting their 80% share can also report any concerns to the HMRC fraud hotline.

Tags : Coronavirusemploymentfurlough
Alex Douglas

The author Alex Douglas

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