Furlough: The 10% Solution

Published:  28 August, 2020

From Tuesday (1 September), garages that have taken advantage of the Coronavirus Job Retention Scheme will  need to pay 10% of wages so so employees still receive 80% of their pay under furlough.

As part of a progressive withdrawal of the furlough, the government’s salary contribution is dropping from 80% to 70%.

Since 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 then, the government had been paying up to 80% of wages, up to a maximum of £2,500 per month.

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 20% of wages to make sure staff still get 80%. At present, the scheme is set to end on Saturday 31 October.

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