Manchester news Furlough scheme changes come in today - here's what you need to know Manchester united news
MetiNews.Com - The coronavirus job retention scheme, which has seen more than nine million people put on furlough leave, is changing today - here's how
Breaking News ! Changes to the government's furlough scheme will come into force today. The government has been paying the wages of more than nine million furloughed workers as part of the coronavirus job retention scheme during the pandemic. Chancellor Rishi Sunak announced that the scheme would be coming to an end on October 31, with changes coming in each month until then to wind it down. The changes will mean little for employees, who will continue to receive 80 per cent of their wages, up to £2,500 a month, until the scheme ends. But from August, employers will need to start making a contribution. Here's everything you need to know about how the coronavirus job retention scheme will work from now until the end of October. What changes are being made today? From August 1, employers will need to start paying ER NICs and pension contributions for the hours the employee is on furlough. The government will continue to pay the full 80 per cent of wages up to a cap of £2,500 for the hours an employee is on furlough. Employers can also continue to top up employee wages to above the 80 per cent if they wish.
. Employees are then entitled to furlough pay for the hours not worked, with wage caps proportional to the hours an employee is furloughed. That means that if an employee is placed on furlough for 60 per cent of their usual hours, they are entitled to 60 per cent of the £2,500 cap. What happens in September? From September 1, the government will pay 70 per cent of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs (employer National Insurance contributions) and pension contributions, and top up employees’ wages to ensure they receive 80 per cent of their wages up to a cap of £2,500, for time they are furloughed. What happens in October? From October 2, the government will pay 60 per cent of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions, and top up employees’ wages to ensure they receive 80 per cent of their wages up to a cap of £2,500, for time they are furloughed.
Source = MetiNews.Com