Furlough is changing and since the introduction of the Furlough (Job Retention Scheme), there have been many changes and today sees another change happening, in relation to Government contributions.
So what are the changes?
The BBC today produced an excellent report that discusses the changes and answers many questions currently being asked.
Todays and future changes are:
- From 1 July, the government will pay 70% of furloughed workers’ salaries, and employers will pay 10%
- In August and September, the government’s contribution will fall to 60% and employers will pay 20%
The monthly limit of £2,500 will stay in place, so workers will not notice the difference, but by making furlough more expensive for employers, the government hopes to encourage them to take workers back full-time if they can, and only furlough those they must.
Employers already must pay their employees’ pension and National Insurance contributions.