Employers must contribute to extended furlough scheme from August

Chancellor Rishi Sunak has laid out how he expects to move businesses off the Coronavirus job Retention Scheme, meaning that some agencies must begin to start part-paying salaries for furloughed staff.

he Job Retention Scheme currently supports 7.5 million workers on furlough, guaranteeing 80 per cent of staff pay up to £2,500 per month, alongside national insurance and pension payments. The Chancellor announced an extension of the scheme until October on 12 May. No changes are expected until the end of July.

Changes begin in August

From August, employers will be required to pay a quarter of all staff wages – even if the business is still in lockdown. They will also be required to pay National Insurance contributions, but it is thought that the Government will still pay pension contributions.

Employees may start working part-time

Employers will be able to bring furloughed staff back part-time from August and will be obliged to declare the number of hours the currently furloughed staff work if they return. Firms caught abusing the system by not paying their share of staff wages face fraud charges.

Information for both employers and employees can be found on the gov.uk website. 

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