Overtime on Furlough

Lisa_L

Hi anyone have info on furlough pay, do employees get paid just basic or is any overtime calculated when working figures out, ie X basic is 550.00 per week, OT is 170.00 IWB is 80.00 - IWB is now £0 as it was an in work bonus, so is the calculation on the £720.00 or £550.00, as OT is not granted every week and def wouldn't have been for the next pos 6 mths pos more it seems unfair they are having assumed OT in this calculation.

Jeremy535897

If your pay is variable, guidance to employers states:
"If the employee has been employed (or engaged by an employment business) for a full twelve months prior to the claim, you can claim for the higher of either:

• the same month’s earning from the previous year
• average monthly earnings from the 2019-20 tax year

If the employee has been employed for less than a year, you can claim for an average of their monthly earnings since they started work.

If the employee only started in February 2020, use a pro-rata for their earnings so far to claim.

Once you’ve worked out how much of an employee’s salary you can claim for, you must then work out the amount of Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions you are entitled to claim."

unholyangel

Firstly, let's acknowledge there is a severe lack of guidance on this at present. I understand they wanted to allay fears and mitigate damage to the economy but all they've done is cause a situation where people are goiing to get it !!!!!! for elbow.

Secondly, I would suggest the OP's husband is salaried. Not variable pay. Otherwise even salaried people are variable pay with shift allowances, overtime, benefits etc. I understand it to mean where the regular pay is not specified by the contract, rather than where the amount paid can vary. So I suspect it's designed for zero hour workers - since there really isn't overtime when you're zero hours and haven't made a commitment to work a minimum number of hours so don't have a salary. 

But ultimately what his employer can reclaim isn't of significance. What he's due to be paid would be specified by his contract and if he has agreed to be furloughed to save his job then what rate he was paid while on furlough should have been part of the discussions between the employer and their employees.