How to check if your employer has calculated your furlough pay correctly and 7 things to check your wage slip for
FURLOUGHED employees will want to make sure they've been paid correctly when their first payment comes through – here's what you need to know.
The coronavirus jobs retention scheme sees the government pay 80 per cent of the wages of furloughed employees, capped at £2,500 a month.
Applications for the scheme went live on April 20, with more than 14,000 companies with a combined one million workers applying on the first day alone.
However, latest data from the British Chambers of Commerce suggests more than 11 million workers will end up being furloughed.
Crucially, workers must have been on a payroll on or before 19 March in order to be furloughed.
However, employers can backdate claims to March 1 and they can even rehire some workers that have previously been made redundant.
If your boss has confirmed you’ve been furloughed, what does this mean for your pay?
How do I know if my furlough pay is correct?
How much furlough pay you get will depend on the agreement you've made with your employer.
The government is covering 80 per cent of the wages of furloughed staff, up to £2,500, but employees can top this up to the full 100 per cent.
This is down to the discretion of your boss, so they don't need to do this.
If your employer has already said they'll cover the rest of your wages and you get a regular monthly pay, you shouldn't notice a change in income.
Otherwise, you'll need to work out 80 per cent of your normal monthly pay – there's a GOV calculator to help you do this.
Furlough pay is done on your pre-tax salary – so you'll be expected to pay tax and national insurance as normal.
As the government amount is capped at £2,500, high-earners will need to keep in mind that they won't be entitled to any more than this from the furlough scheme.
Again, your boss can choose to top up the rest of your wages.
Zero hero workers can also be furloughed, although their pay is calculated a little differently.
Your company will use whichever is higher out of:
- Your earnings in the same month last year
- Your average monthly earnings for the 2019/2020 tax year
Furlough pay can be backdated until March 1.
Self-employed workers aren't entitled to furlough pay, but they'll be eligible for grants worth 80 per cent of their profits through the Self-Employed Income Support Scheme (SEISS).
When will I get my first furlough payment?
The Treasury says they can process up to 450,000 applications an hour and that employers should receive the cash within six working days.
Your firm should then be expected to pay you on your usual pay day, as stated in the terms of your contract – unless they've asked you in advance to accept a deferred payment.
You should check with your employer if you're unsure.
The furlough scheme is expected to stay in place until June 30, 2020.
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Check your wage slip for these seven things
According to Citizens Advice, you should make sure you check your pay slip for the following:
- As a basic first check, make sure your personal information and payroll number is correct.
- Your pay slip should still show your tax and national insurance deductions.
- It should also show any pension contributions you would usually make, as well as other payments you've authorised including loans.
- Check your pay is accurate – where applicable, it should show 80 per cent of your gross regular pay.
- If your employer has agreed to top up your salary to the full 100 per cent, your pay slip should look no different.
- As furlough pay is capped at £2,500, your pay slip shouldn't show a higher amount unless your employer has agreed to make up your wages.
- Some bonuses, commission and overtime can be included in your furlough pay – check out our handy guide for more information.
Thousands of workers will miss out on furlough pay due to loophole despite "qualifying" – here's why.
We've put together a guide to how furlough affects you, including pay, annual leave rights and how it works if you're on maternity or sick leave.
Here are 13 things to know if you’ve been furloughed.
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