Furlough... the road ahead
First published: 6/2/20
Last Modified: 8/4/20, 7:22 PM
Chancellor, Rishi Sunak, has announced details of the extension to the Coronavirus Job Retention Scheme. Mapping out the road to bringing employees back from furlough
From 1 July, there will be more flexibility, enabling employers to bring employees back part time, whilst still receiving an 80% grant for time not worked. Employers will decide the hours and shift patterns their employees will work and will be responsible for paying the wages, in full, while working.
From 1 August, the government will continue to pay 80% of wages up to a cap of £2,500, but employers will pay employers NI and pension contributions.
From 1 September, the government will pay 70% of wages, up to a cap of £2187.50 for hours not work. Employers will pay employer NI, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2500
From 1 October, the government will pay 60% of wages up to a cap of £1875 for hours not worked. Employers will pay employer NI, pension and 20% of wages to make up 80% of the total up to cap of £2500
The scheme will close to new entrants from 30 June. Meaning the final day an employee can be put on furlough, for the first time, will be 10 June
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