pay period. The Chancellor, however, assured there would be no “cliff edge” ending, which MPs fear would bring mass redundancies and job losses. The government is covering 80 per cent of the wages of … You can be furloughed whether you are on a full-time, part-time, agency, flexible or zero-hour contract, but you must have been on your employer's payroll before the extension was announced. First, to create a category of ‘semi-furloughed’ people who can work part-time, and secondly, an extension for companies stuck in long-term lockdown. Long watch: Is this Russian cult leader a fraud? What support is being provided and employer costs: For hours not worked by the employee, the government will pay 80% of wages up to a cap of £2,500. If 100 or more people are being made redundant, for example, group meetings must start at least 45 days before anyone's job ends. © 2021 BBC. The furlough scheme has been extended until 30 April 2021. If your boss decides to take up the scheme, you’ll be paid 80 percent of your normal pay up to a maximum of £2,500 a month. Senior Cabinet ministers have reportedly started preparing public opinion for any upcoming changes to the scheme. “Ultimately, we do need to fire up our economy and get people back to work.”, A Treasury source added: “The Chancellor is working through options this week and no decisions have been taken as yet, so everything is on the table.”, READ MORE: Tony Blair confession: How ex-PM sparked backlash with bizarre personal finance claim. Furlough is bad news, but the sooner you internalize the shortfall, the more time you have to prepare, and the less of a shock it will be. Health Secretary Matt Hancock added: “We obviously need to get people safely back to work so we can withdraw from that scheme. Trade union umbrella body TUC says many businesses are not aware of this rule. A Government source said: “We are going to see a winding-down of the scheme and people being eased back to work gently. The furlough scheme currently covers 80 per cent of pay for employees, up to a ceiling of £2,500 a month. THE Government introduced the coronavirus Job Retention Scheme in March, promising to pay furloughed workers 80 percent of their wages. Where this calculated rate is above the pay the worker receives while on furlough, the employer must pay the difference, that is, between the 80% and 100%. … How much furlough pay you get will depend on the agreement you've made with your employer. Ex. Annual pay rate * Enter the amount earned each year before taxes. How is furlough pay calculated? Schools have .css-1xgj2ad-InlineLink:link{color:#3F3F42;}.css-1xgj2ad-InlineLink:visited{color:#696969;}.css-1xgj2ad-InlineLink:link,.css-1xgj2ad-InlineLink:visited{font-weight:700;border-bottom:1px solid #BABABA;-webkit-text-decoration:none;text-decoration:none;}.css-1xgj2ad-InlineLink:link:hover,.css-1xgj2ad-InlineLink:visited:hover,.css-1xgj2ad-InlineLink:link:focus,.css-1xgj2ad-InlineLink:visited:focus{border-bottom-color:currentcolor;border-bottom-width:2px;color:#B80000;}@supports (text-underline-offset:0.25em){.css-1xgj2ad-InlineLink:link,.css-1xgj2ad-InlineLink:visited{border-bottom:none;-webkit-text-decoration:underline #BABABA;text-decoration:underline #BABABA;-webkit-text-decoration-thickness:1px;text-decoration-thickness:1px;-webkit-text-decoration-skip-ink:none;text-decoration-skip-ink:none;text-underline-offset:0.25em;}.css-1xgj2ad-InlineLink:link:hover,.css-1xgj2ad-InlineLink:visited:hover,.css-1xgj2ad-InlineLink:link:focus,.css-1xgj2ad-InlineLink:visited:focus{-webkit-text-decoration-color:currentcolor;text-decoration-color:currentcolor;-webkit-text-decoration-thickness:2px;text-decoration-thickness:2px;color:#B80000;}}closed to most pupils in England, Scotland and Wales - while Northern Ireland will have an "extended period of remote learning". "We know the premium businesses place on certainty, so it is right that we enable businesses to plan ahead regardless of the path the virus takes," Chancellor of the Exchequer Rishi Sunak said. This includes childcare, the government says. How is the 80% figure calculated? VideoThe paper that helped the homeless, The homeless addict who became a professor, How India calculates value of women's housework, The deadly ingredient smuggled onto US menus, Viewpoint: Africa no longer needs lectures from the US, Tunisians question whether life is better after Arab Spring. This will continue, and employers will have to pay employees' wages for the hours they work as normal. The employer had to pay 20 percent of an employee’s wage up to £625. About 10 million jobs have already been claimed for, at a cost of £43bn, by the middle of November. Furlough scheme: Rishi Sunak announced a raft of changes on May 12, The Prime Minister is expected to outline a 'road map' for easing lockdown this week, Martin Lewis explains new furlough rules but offers warning, 6.3million workers in the UK are reliant on the furlough scheme, Furlough fraud: New warning issued as system cheats increase, The Chancellor said workers would not be faced with a 'cliff edge' ending to the scheme, HMRC said yesterday that 800,000 employers had already applied for the furlough scheme. And in recent days, some have claimed the UK needs to "Wean off" Brits from the scheme, suggesting it could be altered. What help are self-employed getting from government? FURLOUGH will come to an end in a few months but before it closes the Government's contribution to furlough pay will drop to 60 percent, so when will this be? August 2020: The government will pay 80% of wages up to a cap of £2,500. Where the furlough payment is less than the appropriate minimum wage entitlement for the training hours, the employer will need to supplement this income to ensure it at least reaches the appropriate minimum wage is paid for 100 percent of the training time. VideoLong watch: Is this Russian cult leader a fraud? Downing Street and the Treasury did not deny claims the Chancellor, Rishi Sunak, was looking at “tapering” the scheme by cutting the amount of money given by the Treasury. How is my furlough pay calculated? Letting employers know months in advance that furlough will be extended until the end of April could affect the business decisions they take for 2021. We will use your email address only for sending you newsletters. You just need to hold your nerve, Rishi, says PATRICK O'FLYNN, Tony Blair confession: How ex-PM sparked backlash with bizarre personal finance claim, Retirement: How one person managed to stop working at just 33 years old, Martin Lewis points out top savings accounts including 'absolute winner' for easy access, DWP confirms that they will stop any new benefit claimants from using POCA from next week. Prorated annual pay rate . Enter your percent of time based on your job appointment. Each worker is paid up to £2,500 a month of their wages through the scheme. The scheme was extended in August and will now run until March 22, for 24 months in total. Therefore, employers need to ensure that the furlough payment provides sufficient monies to cover these training hours. 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