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Furlough pay, does it reduce month on month ?

A

AV8

pfm Member
I am one of the fortunate ones to be on furlough pay & no matter what money is given I will always be grateful. The furlough pay is for 80% of the monthly pay before the scheme started as I read it.

One bit of confusion though, my pay has been reducing each month & as far as I can see the first payment was for 80% of the month prior to furlough, the second month has reduced again, so I assume that as each month goes by it is reduced to 80% the next month & so on.

Am I barking up a tree :confused:
 
Interesting, and I certainly don't think that is how it was explained to us. Have you done the sums, does it look like 64% of your pay for month 2, for example? Are there any other employer deductions you're not aware of? Have you queried it with whoever pays it, or with your employer? Interested to know what transpires, if you do.
 
The govt. is picking up 80% of your pay until ? the end of this month?, or whenever. It is that simple. The % drops in the near future, but to something like 60%? 30%?

If your employer is using the scheme that is the minimum that you should get, at the moment that means 80%.
 
Your pay should be the same each month until the rate is reduced. My wife has seen the same 80% pay every month. However there may be mitigating circumstances for example if your pay has an element of a bonus or business performance element included.

Cheers,

DV
 
No bonus, no performance, standard hourly paid.

Month 2 was £64 less than month 1, month 2 is £32 less then that so £96 drop.

Tax or NI maybe ?
 
The wages are being done remotely via HR working from home I believe, I will query it when I return to work.
 
AV8 said:
No bonus, no performance, standard hourly paid.

Month 2 was £64 less than month 1, month 2 is £32 less then that so £96 drop.

Tax or NI maybe ?
Click to expand...

Only you can tell that from looking at your payslip. Or enquiring of your payroll dept.
So far as I know Furlough is level for now. I have friends who own businesses that have furloughed staff. In August it will change - but only in that employers will have to make up more difference.

Under furlough now your pay can even go up. This happens if you take annual leave - which your employee has to pay you in full, not 80%
 
AV8 said:
I am one of the fortunate ones to be on furlough pay & no matter what money is given I will always be grateful. The furlough pay is for 80% of the monthly pay before the scheme started as I read it.

One bit of confusion though, my pay has been reducing each month & as far as I can see the first payment was for 80% of the month prior to furlough, the second month has reduced again, so I assume that as each month goes by it is reduced to 80% the next month & so on.

Am I barking up a tree :confused:
Click to expand...
It is how your pay is calculated, companies often do two weeks in advance & two in arrears. By the 2nd month it should stabilise.

This happened to me, I revived more than I expected in the first month & what I thought in the second. I do hope it doesn’t reduce any further!
 
AV8 said:
No bonus, no performance, standard hourly paid.

Month 2 was £64 less than month 1, month 2 is £32 less then that so £96 drop.

Tax or NI maybe ?
Click to expand...
My daughter was furloughed from the start.
Standard hourly rate.
Hasn’t changed by a penny.
 
AV8 said:
I am one of the fortunate ones to be on furlough pay & no matter what money is given I will always be grateful. The furlough pay is for 80% of the monthly pay before the scheme started as I read it.

One bit of confusion though, my pay has been reducing each month & as far as I can see the first payment was for 80% of the month prior to furlough, the second month has reduced again, so I assume that as each month goes by it is reduced to 80% the next month & so on.

Am I barking up a tree :confused:
Click to expand...

Most odd. The pay against which a furlough claim is based should in my view be a fixed amount each month.

https://www.gov.uk/guidance/calcula...im-using-the-coronavirus-job-retention-scheme

What did you agree to? Technically your employer ought to have got your agreement to the variation in the terms of your contract of employment.

Moreover an employer is required to pay over to the employee as a minimum the amount of furlough claimed.

Something does not seem right. Employers can recover 80% of the pre-furlough pay and that has been the case from March up until the end of July. The recovery will from August commence dropping off until the scheme comes to an end later on in the year.
 
Mine went up on the second payment, almost 20%, purely based on the amount of hours they had allocated me, I have no idea why.

You ought to be getting roughly the same each month.
 
No doubte we'll ALL be paying it back once the next tax rise is announced, even those people that have worked as normal throughout this crisis.

Now HMRC have said that if you get tested for Covid by your employer that it's a benefit and you're liable for tax on it, ok it will be a tiny amount but FFS.
 
Just checked the bank, after month 1 it dropped by £15.35 per week, after month 2 it dropped by £9.34 per week. The payments were the same for exactly 1 month then it dropped, 1 month later it dropped.

I have no payslips to check, can't get in touch till we return, I was contracted for 39 hrs so that should be static I would have thought.
 
My daughter has been furloughed from the off, 80% pay and made up to full by employer til the end of this month, still waiting to hear when she'll return to her job within the hospitality industry. She has been told she'll lose holiday entitlement tho as she's been off for 3-4 months
 
Why would she lose holiday entitlement ?

" The scheme does not change your contractual or statutory employment law rights, for example not to be unfairly dismissed, the right to a redundancy payment, paid annual leave or not to be discriminated."
 
Just read this, this is what I was thinking was happening to me :

"If, however, you have been employed for less than a year, then your employer can use an average of your monthly earnings since you started work"

I'm not sure if I am being treated this way but I have also been informed by a colleague that the working hours for those on furlough, he thinks, have been cut from 39 to 37.5 due to operational factors .
 
It could be the way that they've calculated the tax - you could well have over-paid. I found this happened when I was on extended sick leave. The tax should be corrected month by month, but I never knew exactly what they had done - at the end of the tax year I received a rebate from hmrc.
 
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