From Saturday, August 1st, companies will have to begin contributing to the costs of their furloughed staff, including National Insurance payments, for the first time since March.
Since Rishi Sunak announced the furlough scheme, the Government has been paying 80 per cent of the salary of staff for companies who applied, or were eligible, for the scheme.
There are fears that this change could lead to a number of companies announcing redundancies, with some businesses still struggling.
Companies are able to bring back their furloughed staff part-time, with employers paying their employees 100% for the hours worked and also the employers national insurance and pension contributions for the hours that staff are furloughed.
For September, the government will pay 70% of wages up to a cap of £2,187.50 and October 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay employers national insurance 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.
