The furlough scheme, which is due to end in the autumn, saved millions of jobs but from July, employers will need to start contributing to the cost of keeping staff furloughed.
As restrictions start to come to an end and the economy starts to move forward, the government hopes that most furloughed workers will be able to return to work.
For those employees remaining on furlough, they will continue to receive 80% of their salary until 30th September.
If the scheme is not extended employers will then need to decide whether to return any furloughed employees to work or make them redundant.
How is Furlough Changing?
Though furlough remains unchanged for workers, employers are being asked to make a bigger contribution during the final months of the scheme.
Employers already have to pay pension and National Insurance contributions for their workers and from 1 July, employers are being asked to contribute more toward their employees’ salaries with the government contributing 70% and employers 10%. In August and September, the government will pay 60% and employers 20% (up to a maximum of £2500)
