Furlough Scheme Updates Furlough Changes – 1st June 2020

At last, an update on the Job Retention Scheme and how Furlough Leave will work during the extension.  So here’s a quick recap on what will be changing for those employers with workers on Furlough Leave.

  • July – No change to the existing Furlough Leave scheme with the Government paying 80% of salary, NIC and pension payments up to a maximum of £2,500
  • August – Employers start paying NIC and pension contributions – it isn’t clear yet whether this is at 80% or 100% but given the 80% of salary, up to £2,500 rate is continuing until October it is assumed this will be at 80%. How this scheme will work has also yet to be defined
  • September – In addition to NIC and pension payment the employer will have to pay 10% of salary as well with the Government paying 70% (capped at £2,190)
  • October – Employers will be paying 20% of salaries and the Government will pay 60% (capped at £1875)

The Government has also announced that from July employees on furlough leave will be able to return to work part time but will be paid 100% of salary.  What part time looks like will be up to individual firms to decide