Temporary pay cut and Furlough

J1mmykenz

Hello,

I was after some help, I have recently been given a 10% temporary paycut and also been furloughed within the same week.

I am now being paid 80% of my new temporary salary, is this legal? I have seen that you should be being paid whatever your salary was on February 28th 2020.

Any help or advice would be great.

Jeremy535897

No, that is not right. You should be paid a minimum of 80% of your "reference salary", or £2,500 a month if lower. How to calculate that depends on whether your pay varies. You can see how it works for both fixed rate and variable pay employees here .You will see that for fixed rate employees they look at the pay period ending before 19 March 2020:
https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme

If your employer pays you less than 80% of your reference salary while you are on furlough, they may not be able to claim anything for your wage at all under CJRS. This could rebound on you if they amended your contract of employment to enable them to deduct failed claims from your wages.