27 Jul Furlough End In Sight
The scheme, which has protected millions of jobs, is due to close at the end of September.
According to the government 11.6 million jobs have been supported since the scheme began. The total cost from March 2020 until furlough closes at the end of September this year will be close to £66 billion the Office for Budget Responsibility estimates.
The rules now change again starting 1st August, and will then continue unchanged until the end of September. So what are the new rules for August and September?
The following chart from HM Revenue and Customs shows how the furlough regime has developed since May. The level of government contribution available in the coming months, the required employer contribution and the amount that the employee receives per month where the employee is furloughed 100% of the time are shown.
Wage caps are proportional to the hours not worked.
|Government contribution: wages for hours not worked||80% up to £2,500||80% up to £2,500||70% up to £2,187.50||60% up to £1,875||60% up to £1,875|
|Employer contribution: employer National Insurance contributions and pension contributions||Yes||Yes||Yes||Yes||Yes|
|Employer contribution wages for hours not worked||No||No||10% up to £312.50||20% up to £625||20% up to £625|
|For hours not worked employee receives||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month|
Employers can continue to choose to top up your employees’ wages above the 80% total and £2,500 cap for the hours not worked at your own expense.
The Graham Agency. Keeping you informed.