Furlough: Employers now pay National Insurance and pension contributions

Published:  03 August, 2020

 Garages that have taken advantage of the Coronavirus Job Retention Scheme now have to pay a small proportion of the cost of the furlough, with this share rising until the scheme winds up at the end of October.

From Saturday (1 August), businesses that have put staff on furlough have been required to pay National Insurance and pension contributions for their workers. Up until now, the government had been paying up to 80% of wages, up to a maximum of £2,500 per month.

The government’s contribution will drop again from Tuesday 1 September, when it will pay 70% of wages up to a maximum of £2,187.50. Employers will need to pay National Insurance  and pension contributions, as well as providing an additional 10% of wages so employees receive 80% of their full pay.

Then, from Thursday 1 October, the government will pay 60% of wages up to £1,875, with employers topping up the national insurance, pension contributions and wages to make sure staff still get 80%.

At present, the scheme is set to end on Saturday 31 October.

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