The government has announced that the furlough scheme will be extended until the end of September 2021. The level of grant available to employers under the scheme will stay the same until 30 June 2021 when employers will need to contribute towards the employees’ wages. This will start at 10% and rise to 20% in August and September. To be eligible for the grant employers must continue to pay their furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.
If an Employer wishes to top up their employees’ wages above the 80% total and £2,500 cap for the hours not worked then they can at their own expense.
And remember – the furlough scheme will now run for 9 months of 2021 and you can ask employees to take annual leave whilst furloughed. This will help you to avoid them cramming in their remaining days off when they return to work. All you need to do is top up pay so that it is equal to the amount that they would have earned if they’d been working.
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