employment-update-2020
Furlough Scheme Changes
  • 29th Jun 2021
  • Article written by Louise Purcell
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Whilst the Furlough Scheme remains in place until 30th September,  from Thursday Employers will be asked to make an increased contribution towards the pay of their Employees.

 

The Scheme will continue to pay 80% of a worker’s salary up to the £2,500 limit.  However, from 1st July Employers will be expected to contribute 10% with the Government making up the remaining 70%. 

 

For August and September, Employer contributions will increase to 20% with the Government paying the balance of 60%.

 

These provisions are clearly aimed to seek to reduce reliance on the Furlough Scheme as restrictions wind down and things start to return to normal.

 

Of course as we know, it’s difficult to be certain of anything in this Pandemic.  Indeed, the Scheme has been extended four times already.  The uncertainty is obviously difficult for Employers trying to run businesses, especially for those in the leisure, hospitality and tourism industries but for now at least, the proposed framework is clear.

 

For any assistance please get in contact with Louise Purcell.