EMPLOYERS will now only receive a 70 per cent contribution from the government for employees on furlough.
The change, which came into effect on September 1, includes a cap of £2,187.50 for the hours the employee is on furlough.
Employers will pay employer national insurance contributions (ER NICs) and pension contributions for the hours the employee is on furlough. They will also top up employees’ wages to ensure they receive 80 per cent of their pay up to a cap of £2,500 for time they are furloughed.
The government contribution is set to fall further in October – to 60 per cent, with a cap of £1,875 – before the scheme closes on October 31.
Practices can continue to top up employee wages above the 80 per cent total and £2,500 cap for the hours not worked at their own expense if they wish. Employers will have to pay their employees for the hours worked.
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