Coronavirus: Employers to contribute 20% of furloughed staff salary from October

Rishi Sunak

Chancellor of the exchequer Rishi Sunak has unveiled changes to the furlough scheme which will see employers contribute 20% of all staff salary by October.

Sunak, who was speaking at the government’s daily coronavirus press briefing, said the furlough system would continue unchanged through June and July, but warned the system would begin to taper off from August and said firms would have to contribute 20% of staff salary on the scheme by October.

The chancellor said that the government would expect firms to begin contributing by covering furloughed staff National Insurance and pension contributions in August. By September, the government would drop the coverage to 70% of staff salary up to £2,190 a month.

By October, he said the government would cover 60% to a cap of £1,875 with employers being expected to make up the shortfall back to the 80% of pre-coronavirus lockdown levels.

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