Furlough rules go through a major change from today, with the Government contribution dropping to 60%.
From Thursday, October 1, instead of the Government originally paying 80 per cent of pay - dropped to 70% last month - it will now pay 60 per cent, up to £1,875.
Employers will have to pay a minimum of 20% of wages, up to a cap of £2,500.
It is the last major change before the system is replaced at the end of the month.
The Job Retention Scheme will be ended on October 31 and replaced with a Job Support Scheme.
Under the new scheme, instead of paying up to 80 per cent of salaries for people unable to work, the government will pay up to two thirds of salaries for people working at least a third of their hours. The aim is to top up the wages of workers in “viable jobs” for six months, when they are working at least a third of their normal hours.
The change comes after the original 80 per cent system was wound down to a 70 per cent contribution from the Treasury last month.
The Government also ordered employers to start paying National Insurance and pensions contributions for all staff.
It means that monthly earnings will be at least 80% of workers' salary with money from the Government and the employer.
It is then up to each individual employer whether they want to top up the remaining 20% to 100% of salary.
