Furlough Payment

[Birdlover86]

I work in hospitality so we have been closed for the last month and back on furlough. Since the last full lockdown we have been back and forth and never a full month of furlough, maybe some part-time etc.

During the first furloughed lockdown we received 80% of our salary and when we returned to work in summer had paycuts because of less trading hours etc.

This month we have been paid our furlough at 80% of our ‘new’ salaries meaning we are on even less than the first time round, so AIBU to expect 80% of the full original salary?

I know I’m lucky to even still be earning at the moment but it does feel like it makes things tighter and slightly more stressful.

Furlough is 80% of your salary at the time the furlough starts. Not 80% of your salary at some point last year.

Did you have an official and permanent pay cut with a new contract?

No change of contract, just a conversation with a view for it to go back to regular pay ASAP!

No why would it be 80% of an a old salary? You have taken a pay cut so that is your current pay and what payments would be based upon.

If they'd gone to 80% of your old pay, it wouldn't be reimbursed by the government, and there's no income for them to make up the gap.

@SushiSoozie

Furlough is 80% of your salary at the time the furlough starts. Not 80% of your salary at some point last year.

This. I don’t understand why you would think it would be based on your old salary

@SushiSoozie

Furlough is 80% of your salary at the time the furlough starts. Not 80% of your salary at some point last year.

Actually this isn't true.

^For employees who were on your payroll on 19 March 2020, that is you made a payment of earnings to them in the tax year 2019 to 2020 which was reported to HMRC on a Real Time Information (RTI) Full Payment Submission (FPS) on or before 19 March 2020 you should calculate 80% of the higher of the:

wages earned in the corresponding calendar period in a previous year
or
average wages payable in the tax year 2019 to 2020

This also applies to employees for whom you made a valid Job Retention Scheme claim in a claim period ending any time on or before 31 October 2020.

For all other employees you should calculate 80% of the average wages payable between 6 April 2020 (or, if later, the date the employment started) and the day before they were first furloughed on or after 1 November 2020.^

Okay well I guess that all makes sense, hopefully we’re all out this situation soon!

@Aprilx

No why would it be 80% of an a old salary? You have taken a pay cut so that is your current pay and what payments would be based upon.

That's how the rules are though. For those who've been previously furloughed during the first lockdown, any subequent furlough pay is still based on the original pay levels, i.e. Feb 20!

Yes - it is designed to stop people giving themselves a sudden pay rise, for which the Government then has to pay 80% of....

@Kazzyhoward
Thank you, I may run this past my employer just to double check.