Coronavirus Crisis: The Government has produced more information in regards to the 80% of wages Jobs Retention Scheme including how pay will be calculated. Here are some of the details:
HOW THE SCHEME WORKS
If you and your employer both agree, your employer might be able to keep you on the payroll if they’re unable to operate or have no work for you to do because of coronavirus (COVID-19). This is known as being ‘on furlough’.
Your employer could pay 80% of your wages through the Coronavirus Job Retention Scheme, up to a monthly cap of £2,500.
You’ll still be paid by your employer and pay taxes from your income. You cannot undertake work for your employer while on furlough. We expect the scheme to be up and running by the end of April.
ARE YOU ELIGIBLE
Any UK employer with a UK bank account will be able to claim, but you must have been on your employer’s PAYE payroll on 28 February 2020. You can be on any type of contract, including a zero-hour contract or a temporary contract. The scheme does not apply to the self-employed.
If you’re on sick leave or self-isolating because of coronavirus (COVID-19), speak to your employer about whether you’re eligible - you should get Statutory Sick Pay (SSP) while you are on sick leave or self-isolating, but can be furloughed after this.
Your employer can agree to re-employ you and place you on furlough instead. They’ll still be able to claim a grant to cover 80% of your monthly earnings, up to a monthly cap of £2,500
IF YOU HAVE BEEN MADE REDUNDANT AFTER FEBRUARY 28th
Your employer can agree to re-employ you and place you on furlough instead. They’ll still be able to claim a grant to cover 80% of your monthly earnings, up to a monthly cap of £2,500
IF YOU CURRENTLY HAVE MORE THAN ONE EMPLOYER
You can be put on furlough by one employer and continue to work for another, if it is permitted within your employment contract.
If you’re put on furlough by more than one employer, you’ll receive separate payments from each employer. The 80% of your normal wage up to a £2,500 monthly cap applies to each job
HOW MUCH WILL I BE PAID
You will be paid 80% of your monthly earnings, up to a maximum of £2,500, backdated from 1 March.
You’ll still pay Income Tax, National Insurance contributions and any other deductions from your wage.
HOW WILL MY EARNINGS BE CALCULATED
If you’ve been employed (or engaged by an employment business in the case of agency workers) for a full year, you can claim for the higher of either:
the amount you earned in the same month last year
an average of your monthly earnings from the last year
if you’ve been employed for less than a year, you should be paid for an average of your monthly earnings since you started work. The same arrangements apply if your monthly pay varies such as if you are on a zero-hour contract.
If you started work in February 2020, your employer will pro-rata your earnings from that month.
Bonuses, commissions and fees are not included as part of your monthly earnings.
For further information go to:
https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronav...
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