How much will a furloughed employee take home?

[Bearbehind]

I can’t seem to get to the bottom of this

Assuming the employee usually earned over £2,500 per month so would
just get the full furlough payment

If they are on a basic tax code - what would their take home pay be per month?

www.thesalarycalculator.co.uk/

Take your average earnings and deduct 20% ... that's what you should get.
If it's over 2.5k then you get 2.5k - it's that simple.

Thanks but the furlough payment is not sick pay

Nope not sick pay...

I've read it will only pay pension contributions to the minimum required, e.g. 3% where you may currently be receiving more

Click the link, scroll down to the take home calculator.

It depends, some companies are topping up the 20% so your wages would be the same, it all depends what it says in your letter from your employer

yvla it’s really not that simple

The £2500 is subject to tax and NI, both employee and employer contributions I think

People aren’t going to be taking home £2,500

I’ve worked it out to be £1800 per month based on £2500 being 113.8% of the employees gross salary (to account for the 13.8% employers NI) and then basic tax on the remaining £2200 (£2200 being what’s left after employers NI)

Is this right or not?

gin, I’m asking about the basic payment - a lot of employers aren’t topping this up

@Ylvamoon is correct although your employer might top up to 100 %

£2500 x 12= £30k, use the calculator to see what you'd take home on a salary if £30k?

jolli there’s no mention on that website of furlough

This isn’t just a £2500 per month salary payment

rayna as I’ve explained above, it doesn’t appear to be that simple

The £2500 has to cover employers NI I believe, plus pension contributions potentially too

What you are complicating it? The salary calculator also takes into account the points you mention.

FAQ it does not cover employers NI contributions or pension contributions

As I understand it the £2500 is paid to the employers and has to cover all elements of the employees pay which, as I’ve posted above, indicated to me the employee will only get £1800

I’m asking if anyone has evidence of whether this is correct or not

The £2,500 is gross & subject to the usual deductions of income tax, employee NIC & employer pension.

Employers will receive the £2,500 plus their share of employers NIC & pension contributions of 3% as a grant.

On a standard 1250L tax code & paying 5% employee pension contributions your take home will be approx £1895.

Your employer should pay you for any work you have physically done in March & then pay 80% of what you should've earned between your furloughed date & the end of the month - they cannot claim for any period an employee has been working as normal so your first full furloughed month will actually be April.

First paragraph should say employee pension

Employers will receive the £2,500 plus their share of employers NIC & pension contributions of 3% as a grant.

Thanks natasha, could you provide a link to where it’s been confirmed that the employers NIC and pension contribution will be paid to the employer over and above the £2500

www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

@Bearbehind link above & screenshot showing relevant section - I've spent all week learning the ins & outs of furlough for work

Says so on gov.uk page @bearbehind

www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Excellent - thanks natasha

It’s a steep learning curve all round isn’t it!

I'm trying to work out if it's 80% of actual "take home" pay or 80% of actual pay before tax and NI?

It’s not 80% of your take home pay

80% before tax and NI. So for many they will receive more than 80% of their usual net pay due to tax effects

Hen it's 80% of your gross wage with different ways of calculating that depending on if your usual pay is static or variable