Furlough Payment Structure Update

New structure in place for furlough scheme.

Changes to Furlough Scheme & SEISS – Action Required

The Chancellor has recently announced changes to the Government’s furlough scheme. All furloughed employees will continue to receive a minimum of 80% pay (up to a max of £2500) for the next two of months. Employers will then be required to contribute towards costs. 

Here is a more detailed breakdown;

 

MonthGovernment ContributionEmployers Contribution
June80% (max £2500 pm)
+ NI + Pens
July80% (max £2500 pm)
+ NI + Pens
August80% (max £2500 pm)NI + Pension
September70% (max £2190 pm)10% + NI + Pension
October60% (max £1875 pm)20% + NI + Pension

 

Flexibility

From the 1.06.20 a new more flexible furlough scheme is also being introduced. You can now opt to have employees return on a part time basis and only pay them for the hours they have worked each month. The rest of thier income could be claimed through the furlough scheme up to the cap set out above for the given month.

Only just thinking about furloughing some employees? Be quick. The furlough scheme will be closed to new entrants on 30th June so, in order to be eligible and have a minimum of 3 weeks on furlough, employees will need to be furloughed by 10th June at the latest. 

Self Employed Income Support Scheme (SEISS)

There were also changes to the SEISS announced.  Eligible individuals can claim a 2nd final grant in August worth 70% of their average monthly trading.  The grant will cover 3 months’ profit capped at £6570.

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