The Chancellor has stated that it is time that the cost of the Job Retention Scheme is shared by Employers.
For employees that are fully furloughed until 31st July,the Employer does not have to contribute any additional monies to pay furloughed employees.
From 1st August, Companies will need to pay the Employers NI and Pension contributions and will no longer be able to claim these costs back under the Job Retention Scheme.
From 1st September, companies will need to pay 10% of furloughed salaries in addition to the Employers NI and Pension contributions.
From 1st October, companies will then need to pay 20% of furloughed salaries plus Employers NI and pension contributions.
The above sums are payable whether the employees are fully furloughed or working under the Flexible Furlough arrangements. When working under Flexible Furlough, the Employer must also pay the Employee for all hours worked.