Furlough Update - 1 September 2020

Today marks some key changes to the Job Retention Scheme where companies that have been using the government's coronavirus furlough scheme are now having to contribute to workers' wages.

The Coronavirus Job Retention Scheme has paid 80% of the wages of workers placed on leave, up to a maximum of £2,500 a month. But from today that is going down to 70%, with the employer paying 10%.

A summary of the key changes are as follows:

  • The government will pay 70% of wages up to a cap of £2,187.50 a month.
  • Employers are already paying employees' pension contributions and National Insurance, but will now have to pay 10% of salaries as well.
  • In October, the government will pay 60% of wages up to a cap of £1,875. The employers' share of the bill will then go up to 20% of wages.

CONTACT US

If you require advice on this or any other employment law related issue, please contact the Employment team at Downs Solicitors LLP

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