|
|
Full or flexible furloughing |
Subsidy percentage |
Employer contribution |
Who pays employer NICs and pension |
|
June |
NA |
80% with £2,500 cap |
0% (if not topping up) |
Government |
|
July |
Full |
80% with £2,500 cap |
0% (if not topping up) |
Government |
|
July |
Flexible |
80% with £2,500 cap on hours not worked |
Employer must pay for hours worked |
Government to pay for hours not worked Employer to pay for hours worked |
|
August |
Full |
80% with £2,500 cap |
0% (if not topping up) |
Employer |
|
August |
Flexible |
80% with £2,500 cap on hours not worked |
Employer must pay for hours worked |
Employer |
|
September |
Full |
70% with £2,187.50 cap |
10% up to £312.50 |
Employer |
|
September |
Flexible |
70% with £2,187.50 cap on hours not worked |
Employer must pay for hours worked |
Employer |
|
October |
Full |
60% with £1,875 cap |
20% up to £625
|
Employer |
|
October |
Flexible |
60% with £1,875 cap on hours not worked |
Employer must pay for hours worked |
Employer |
Implications
- June: No change whatsoever to employer costs (refer to our notes on closure to no entrants).
- July: Whilst employers can take advantage of flexible furloughing, they must bear the costs of salary and contributions on hours worked by the employee. If employee is fully furloughed, then government contributions on salary and contributions remain as before.
- August: Employers must bear the cost of employer NICs and pension regardless of whether employee is fully furloughed or partially furloughed. Employers must also bear the salary costs for hours worked by employees if flexible furloughing is in play.
- September: For fully furloughed employees, government percentage will decrease to 70% which means employers must make up the 10% if they are to participate in the scheme. For flexible furloughing employees, employer must bear the cost of their salary and contributions.
- October: Government contribution to decrease further to 60% and the employer must make up the 20%. Again, if employee works part-time the employer must bear the cost of salary and contributions.
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