Furlough scheme details
Businesses must start paying towards furlough scheme from August. The Chancellor says
Employers will be asked to contribute, alongside the taxpayer, to pay the wages of their staff,
In June and July, the scheme will continue as before – with the government paying 80% of wages up to £2,500 – with no employer contribution.
In August, the taxpayer contribution will stay at 80%. Employers will only be asked to pay national insurance and employer pension contributions.
In September, employers will be asked to start paying towards people’s wages. Taxpayers will pay 70% ( 70% of salaries, to a cap of £2,190) of the furlough grant, employers 10%. Employers will make up the shortfall to get salaries back to 80% of pre-Covid lockdown levels.
In October, taxpayers will pay 60% (60%, to a cap of £1,875), employers 20%. The scheme will then close. Companies can apply in advance of payroll for the furlough scheme to aid cash flow.
Source: The Guardian