Employers have to start paying as furlough rules change on Saturday

The furlough rules will change on Saturday, August 1 as the scheme designed to protect jobs during the coronavirus lockdown begins to wind down.

The major shift from Saturday will see employers have to make a contribution to the costs of their staff for the first time since furlough began.

Companies will have to pay national insurance and pension contributions of staff on furlough for the first time.

The furlough scheme, which has seen the government pay the wages of millions of workers throughout the coronavirus pandemic, will come to an end on October 31, reports The Mirror.

In September, the scheme will change again, with the Government’s contributions falling to 70%.

All firms will have to pay the remaining 10% to make it 80%.

This will then fall again in October, when the Treasury’s contributions will fall to 60% and employers will have to pay 20%.

The changes have prompted fears that thousands of jobs could be slashed in the coming months.

Under a new back to work bonus, the Government says it will pay employers £1,000 for every member of staff they bring back from furlough.

To qualify, employees must be paid at least £520 a month on average in each month from November to January – the equivalent of the lower earnings limit in National Insurance.

Changes from August

From August 1, the Government will continue to pay 80% of wages up to a cap of £2,500, however firms will be told to make certain contributions.

Employers will have to foot the bill for national insurance and pension payments – equivalent to around 5% per employee.

Changes from September

From September 1, the Government will pay 70% of wages up to a cap of £2,190.

Employers will be told to pay national insurance, pension contributions and 10% of wages to take the total to 80% (up to a cap of £2,500).

Changes from October

From October, the Government will pay 60% of wages up to a cap of £1,875. Employers will have to pay national insurance contributions, pension contributions and 20% of wages to take the total to 80% (or £2,500).

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