Furlough

Carriemoss

I received my furlough wage yesterday, however was disappointed to find it less than I was expecting.  I work a standard 28.5 hour week, however I took some unpaid leave in 2019/2020 tax year and my furlough payment has been based on my average earnings throughout this period.  Hence it’s not a true reflection of my contracted hours. I queried this with my employer, who checked with their accountant who does the payroll for them and they confirmed this is correct.  The advised that furlough payments must be based on previous payroll. Can anyone please advise if this is correct?  Incidentally, I’ve been in my current employment nearly 3 years.  Thanks.

Jeremy535897

If you are a variable pay employee, your employer's CJRS claim is calculated as 80% of the higher of your average wage for 2019/20 up to furlough, and your pay for the equivalent calendar period in the previous year, capped at £2,500 a month. What you are actually paid depends on what you have agreed with your employer, but cannot be less than this. That average unfortunately includes periods where you received sick pay, maternity pay, unpaid leave etc.

Grumpy_chap

It does look as though the OP's employer has used the 'variable pay' calculation.

As the OP states they "work a standard 28.5 hour week", should they not be classed as regular salary, fixed pay employee?

Jeremy535897

Grumpy_chap said:

It does look as though the OP's employer has used the 'variable pay' calculation.

As the OP states they "work a standard 28.5 hour week", should they not be classed as regular salary, fixed pay employee?

That's a good point. I just looked at what you average, rather than whether it should be the average at all. That's why I said "if you are a variable pay employee". If OP's pay doesn't vary from month to month (the definition of a fixed rate employee is a bit more complicated than this), the employer should actually be using the pay in the final pay period on or before 19 March 2020. This of course assumes OP has agreed to their salary being reduced to the amount thew employer can claim under CJRS.