Employers will have to contribute to wages under the furlough scheme as of today, as it continues to unwind. The government will no longer contribute 80% of furloughed workers’ wages but 70% (up to a cap of £2,187.50 per month), with employers being obliged to pick up the remaining 10%. Next month, the government will contribute only 60% (up to a cap of £1,875 per month), with employers picking up 20% of the wage bill.

This is part of winding down of the furlough scheme, which is due to finish at the end of October.

By way of a reminder, the unwinding of the furlough scheme was/is structured as follows:


July

August

September

October

Government contribution: employer NICs and pension contributions

Yes

No

No

No

Government contribution: wages

80% up to £2,500

80% up to £2,500

70% up to £2,187.50

60% up to £1,875

Employer contribution: employer NICs and pension contributions

No

Yes

Yes

Yes

Employer contribution: wages

-

-

10% up to £312.50

20% up to £625

Employee receives

80% up to £2,500 per month

80% up to £2,500 per month

80% up to £2,500 per month

80% up to £2,500 per month

If you have any queries about the furlough scheme and how this impacts your business, please contact one of the Employment team at Kemp Little.