Update Changes to the Covid Job Retention Scheme – otherwise known as the furlough scheme came into effect today the 1st October 2020.
This is the LAST month of the government scheme.
Government will pay 60% of wages, up to a cap of £1,875 per employee.
Employers will pay :
- ER NICS and pension contribution
- PLUS 20% of the wages to make up 80% total up to a cap of £2,500 per employee.
- For the average claim this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.
BUT it is important that any changes to the furlough is agreed in writing as it can be seen as change to terms and conditions of employment. We always recommend in such cases these changes are put in writing and agreed by both the employer and the employee.
If you need help with any of this, please get in touch