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. 

 

 

Key contact

Sungjin Park

Sungjin Park

Knowledge Lawyer, Employment
London

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