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How furlough payments will change post 1st July
Katy Cracknell • July 9, 2020
From the 1st July the furlough scheme changed to the new flexible furlough scheme. Under the amended scheme rules, and as we progress from July through until October when the scheme ends, employers will be expected to pay more towards employee’s furlough payments.
The tapering of the scheme will be as follows:
| July | August | September | October | |
|---|---|---|---|---|
| Government pays employer NICs and pension contributions | Yes | No | No | No |
| Government contribution to employee wages | 80% up to £2,500 | 80% up to £2,500 | 70% up to £2,187.50 | 60% up to £1,875 |
| Employer pays NICs and pension contributions | No | Yes | Yes | Yes |
| Employer contribution to wages | None | None | 10% up to £312.50 | 20% up to £625 |
| 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 |
Remember that from 1st July 2020, employees are eligible to be furloughed if you have previously submitted a claim for them in relation to a furlough period of at least 3 consecutive weeks taking place at any time between 1st March and 30th June 2020.
Importantly, the number of employees you can claim for in any claim period starting from 1st July cannot exceed the maximum number of employees you claimed for under any claim ending by 30th June 2020.
For example, if you previously submitted 3 claims between 1st March and 30th June 2020, in which the total number of employees furloughed in each respective claim was 30, 20 and 50 employees, then the maximum number of employees that you can furlough in any single claim starting on or after 1st July would be 50.
The scheme rules are complicated and you can find out more about what you should do to ensure you adhere to the rules here.
And of-course if you have any specific questions get in touch with us today.
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