UK employers to pay 25% of furloughed wages

UK employers to pay 25% of furloughed wages

Employers will have to pay 25% of furloughed staff wages from August as the Treasury starts to reduce state provision, it has been reported.

Chancellor Rishi Sunak is expected to officially announce this week that employers will have to contribute this amount from August, as lockdown restrictions ease, according to the Times.

It is understood employers will be allowed to take furloughed workers back part time for as many hours a week as they want. All employers using the scheme will be required to make the payments, even if they are still under lockdown.

The Treasury will reportedly direct employers to cover between 20% and 30% of an employee’s wage, in addition to their national insurance contributions.

The furlough scheme pays 80% of a worker’s salary up to £2,500 a month, and is currently supporting approximately 7.5 million jobs. The Office for Budget Responsibility has said the scheme could cost up to £80bn.

Over eight million people have been furloughed, equivalent to a third of the private sector workforce.

Speaking in the House of Commons earlier in May, Sunak said: "Until the end of July there will be no changes whatsoever. Then from August to October, the scheme will continue for all sectors and regions of the UK but with greater flexibility to support the transition back to work.

"Employers currently using the scheme will be able to bring furloughed employees back part-time. And we will ask employers to start sharing with the government the cost of paying people’s salaries. Full details will follow by the end of May, but I want to assure people today of one thing that won’t change: workers will through the combined efforts of government and employers continue to receive the same level of overall support as they do now at 80% of their current salary up to £2,500 a month."