Calculating Furlough with Holidays Added

MPS92

Is it okay for an employer to add holiday pay to the pay period ending 19th March to boost the amount of furlough paid to an employee by the government, as a favour?

Jeremy535897

The amount of the pay for the last pay period before 20 March 2020, on which furlough for fixed rate employees is based, is a factual number. It can't have things added to it. Some things in it, for example discretionary bonuses, might not be able to be included in the CJRS calculation.

Jeremy535897

I do not know either. If it were legitimate, I think it would have happened more widely.

Jeremy535897

The pay day on which fixed rate employee's reference salary is based has to be before 20 March 2020, before the scheme was announced.

Jeremy535897

So how did they know to add holiday in? They could only do that by altering the pay after the event, which would be vulnerable to discovery.

Jeremy535897

It sounds like nonsense to me, but if there is something wrong, it is the employer who wrongly claims that will be in trouble. What the employer chooses to pay the employee, so long as it is at least the amount claimed under CJRS, is up to them.