Furlough extended till September’s end

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As of tomorrow, the rules surrounding the Government backed furlough scheme will be altered slightly, with employers able to receive the money should they continue to pay 80% of their employee’s wages, with an enforced cap of 2 and a half grand a month. Government contributions will reduce monthly as follows:

  • August:
    • Government contributes 60% up to £1,875
    • Employer contributes 20% up to £625
  • September:
    • Government contributes 60% up to £1,875
    • Employer contributes 20% up to £625

For employees, this means they will continue getting 80% of their wages per month for hours not worked until the end of the Furlough Scheme.

Employers can choose to top up their employees’ wages above 80% cap for hours not worked at their own expense. However, this is not compulsory.

Employers will also be required to make employer National Insurance contributions (NICs) and pension contributions as normal.