How the furlough rules are changing from today

The Government scheme designed to protect jobs during the coronavirus pandemic is changing significantly from Tuesday, September 1.

Until now the Government has paid 80 per cent of the salary of anyone who has been asked not to work during the outbreak.

But from today companies will have to start paying at least 10 per cent of the salaries of furloughed staff.

That follows a change last month when companies had to start paying National Insurance and pension contributions.

A Government spokesman said: “From 1 September, the Government will pay 70% of wages up to a maximum cap of £2,187.50 for the hours the employee is on furlough.

“Employers will top up employees’ wages to ensure they receive 80% (up to £2,500). The caps are proportional to the hours not worked.

“Unless you’re making a new claim for an employee who is a military reservist or is returning from statutory parental leave, you can only continue to claim through the scheme if:

  • you have previously furloughed the employee for 3 consecutive weeks between March 1 and 30 June
  • you submitted your claim before 31 July.”

The scheme will change again in one month.

From October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough.

Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed

.