Furlough but only on minimum hourly rate

Opulence79

Hi
Has anyone else been furloughed but only on minimum hourly rate?
This is less than UC and don’t understand how HMRC can claim that the remainder of my hourly rate is discretionary.
My hourly rate is stated in my contract so don’t understand why the government would place a cap of £2500 if this furlough scheme was only for minimum wage. 

Any help most welcome. Thanks 

Illusionary

I'd suggest asking your employer to justify the level at which they're paying you while on furlough. If they're applying for support from the Job Retention Scheme, this should be at least 80% of your regular contractual earnings and certainly not limited to minimum wage (as applied to your normal hours). Is there anything at all in your contract about a discretionary element to your pay?

Opulence79

Hi not at all but from looking at the payslip, they have divided it into basic and advanced. Little did I know that this would come back to bite me in the rear! 

Jeremy535897

HMRC do not claim anything. Your employer submits a claim under CJRS and HMRC pay it out if they see the employee was on the payroll on or before 19 March 2020. HMRC don't know what your employer is obliged to pay you. They don't know what your contract of employment says.

Your employer is obliged to pay you at least 80% of your "reference salary", or £2,500 if that is less. Failure to do so means they cannot claim CJRS in respect of your wage.

You say your payslip is divided into "basic" and "advanced". Two questions:

• is your payslip always divided in this way, and was the "basic" bit equal to NMW?
• is the "advanced" element of your pay now zero?

Just because your pay is made up of two component parts does not mean your employer is only entitled to claim one part. It depends on your contract of employment. Presumably your contract of employment was amended when you agreed to be furloughed?

For detailed information on how to calculate your reference salary, see:
https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme