Millions of workers are set to receive their first furlough paycheck this week, after the Government opened its portal for the jobs retentions scheme.
More than 2million firms have already applied for Government help, with the money expected to arrive within a week of their application.
The scheme was first launched last month to support firms and workers during the ongoing pandemic.
Arcadia, Wetherspoons and British Airways are amongst those that have applied for it to help pay their staff during the lockdown period.
Under it, the Government will pay workers up to 80% of their monthly wages up to £2,500 a month - this is equivalent to £30,000 a year.
For the majority of staff, pay day will remain the same, with firms being told to pay their workers and then claim the money back at a later date.
"It is your employer who will furlough you. To provide you with furlough pay during this period they will need to make a claim for a grant through the government website. They will then receive a reference number which HMRC will check to ensure the claim is correct," explained Matthew Bradbury, employment expert at Citizens Advice.
HMRC will then pay the grant by Bacs into your employer’s bank account within six working days. While furlough leave can be backdated to 1st March, the portal for employers to apply for grants only launched at 8am on 20th April."
When can you expect to be paid?
There are two possible scenarios to this - but the majority of workers will be paid on their usual date.
Your payment date is when your contract says it is - and unless your employer has stated otherwise, your money will continue to arrive on its this date.
But, if your employer has asked you to accept deferred payment, your money will arrive slightly later.
This should be explained to you in writing in advance of when the money is due.
Things to look out for on your wage slip
If you have been furloughed, you will also have agreed to accept 80% of your gross regular pay up to a cap of £2,500 per month.
Some employers may have decided to top up the 80% to 100%, but they don’t have to.
Your payslip should show a figure which, where applicable, is 80% of your gross regular pay.
Under the scheme, the calculation of gross regular pay is complex. For example, if you work on commission, it includes some commission payments but not others. You’ll be paid 80% of your salary or whichever is the higher of:
The same month in 2019 as the month in which your employer applies for the grant
Your average monthly income in the tax year 2019-2020
An average based on the time you’ve spent working if you weren’t employed on those dates
If you want to check whether your employer has calculated your furlough pay correctly, You can use this handy calculator to work it out.
Once you've establish what your regular gross pay is, the payslip should show 80% of this figure.
The payslip will also show the usual deductions for tax, national insurance, pension and any other deductions you have agreed that your employer can make, for example to pay back a loan.
If your employer has agreed to top up your furlough pay to 100% of pay, your payslip shouldn't look any different
