If furloughed on 80% - net or gross?

[Zootropolis]

Can anyone tell me, if furloughed on 80% of wages is that calculated on net or gross? And if you pay pension/AVCs as a percentage out of gross pay does that amount stay the same or adjust to a percentage of the 80% amount?

Net. Still subject to tax and no. Plus pension contribution I think

National insurance cont. sorry typo

I don't know, but isn't 80% of your usual gross the same as 80% of your usual net? In terms of how much arrives in your bank.

I admit maths isn't my strong point though.

80% of your gross. Due to tax/nic thresholds etc., most people will end up with more than 80% of their net as the proportion of tax/nic will be less.

I was told 80% of gross so tax and NI will be less so your net will not be quite 20% down. I haven’t seen an official calculation let, im being furloughed from Friday.

@CoffeeRunner 80% of gross means less money to tax, so not quite the same.

Thanks, so the Furlough ceiling of £2,500 has a take home of £1895 after deductions and a 5% pension contribution. That’s around a 30k salary so anyone who earns above that amount usually will drop a fair bit of income during the furlough. Just trying to get my head round it in case it comes in.

Yes it’s on gross under £2500

Actually I thought it was 80% of gross and then the maximum payment would need to be under £2500 so that would be ok up to about 40k salaries?

My boss has told me that it ‘may’ be available at the end of April. Does anyone know how true that is?

AlohaMolly

My boss has told me that it ‘may’ be available at the end of April. Does anyone know how true that is?
What does it matter? You, as an employee, won't be receiving the grant from the government. Your employer should pay you 80% of your gross salary up to a maximum of £2.5k (or more if they decide to) and then will seek the grant from the Govt to compensate them.
Once they apply, it shouldn't matter to you when your employer receives the grant, they should still pay you at your usual payment intervals. They are separate transactions.

I’m not sure my boss knows that - the way he has explained it is that they need our P60s to work out what we are owed and that there will be a portal and the money ‘may’ be available at the end of April but it will be backdated until the official date we were furloughed. Is that not right?

The company pays and they get the money once government gets set up

It’s not the employee to be out of pocket
The employer should have cash reserves to cover for this

If that's what they said @AlohaMolly your employer has either misunderstood or is trying to not pay you until they have the money back from the government. They are wrong, they pay you and then get it back at a later date.

It does of course rely on the employer being able to afford to do that

I've been furloughed, my manager didn't know how the 80% would be worked out but did say that we will be paid as usual on the usual date each month.

My employer is a holiday home management agency and his words were set are haemorrhaging money’ as he is refunding peoples’ holidays. He’s a small business and has only been going two years and doesn’t have that sort of cash unfortunately.

Fortunately for me, I have enough in my savings to last 8/9 weeks but I’d really rather not have to, and most of my colleagues live (weekly) wage to wage

I thought it was the equivalent of a 30k salary

He’s a small business and has only been going two years and doesn’t have that sort of cash unfortunately

Lots of businesses will be in the same position unfortunately but that doesn' allow him to run the furlough scheme to suit him. Whoever does your payroll will hoepfully be better informed about the rules

Payroll is a big company in Manchester so one would assume they’re giving him correct information but he’s fudging the issue because he doesn’t have the cash reserves - that’s my gut instinct.

Hopefully I’ll be wrong and I’ll see wages in my account on Thursday.

@AlohaMolly I'm in a similar line of work. If this goes on through the summer then we will be unlikely to survive. Our revenue is destroyed. The company has going over 30 years, and in normal times is viable and profitable, but this is just terrible. I'm very worried about my job tbh.

@qwertyuiop100 it’s awful isn’t it? And off the back of a long, bad winter for us.

My DP runs his own outdoor activity business that’s tourism based too so it’s very tense times here.

To be fair, Anglesey’s biggest industry is tourism, and our little village just on the mainland of wales too. I just hope people can adhere to the rules and we can start to relax the rules by July/August

The 80 percent is for the employer to claim from the state. You may get the 80 percent or your normal pay, depends how solvent your employer is.