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Manchester Evening News
Manchester Evening News
National
Kieran Isgin

Furlough scheme rules are changing this week - here's what you need to know

The government's Coronavirus Retention Scheme - which has been extended until 30 September - will change this week.

The scheme was introduced at the start of the pandemic to protect and pay people who were unable to work due to lockdown.

Currently, employers can claim for up to 80 per cent of a workers' salary, worth up to £2,500 a month. They must make National Insurance and pension contributions.

However from Thursday 1 July, the level of grant from the government gives to employers will reduce.

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From that date the government will pay up to 70 per cent of an employee's wages, capping at a maximum of £2187.50, for the hours an employee is on furlough.

Employers will now be asked to top up the wages to ensure that a furloughed employee is still earning at least 80 percent of their wages.

Workers on furlough will see no change.

The rules will change again in August - where the government grant will reduce to 60 per cent - with employers having to make a 20 per cent contribution to wages.

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