New furlough rules from September 1 - including how your pay is changing

Posted by Carolina Plugaru on

Rishi Sunak

(Source: Mirror)

Employers across the UK are preparing for a fresh wave of furlough changes next month, as the Government scales back its contributions for the first time since March. The move, which experts warn could trigger another round of redundancies, comes into force on September 1, and will see the Treasury's contributions fall from 80% to 70% per employee.

It means that employers will have to pay a minimum of 10% of wages, bringing the worker's total monthly earnings to at least 80% of their salary.

The changes follow on from part-time working in July, and a new 5% contribution from August which includes national insurance and pension contributions.

"The Job Retention Scheme was put in place to support employers who were not able to operate as normal due to the pandemic," Alan Price, employment law expert and chief executive of BrightHR explained.

Read more on Mirror

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