Changes to employer contributions for furloughed staff

The details of the changes to the Coronavirus Job Retention Scheme have been announced, including the below changes regarding workplace pensions:

Employer contributions for furloughed workers

Furlough pay will remain capped at 80% of salary or wages up to £2,500.

Currently, grants under the Government’s Job Retention Scheme cover costs relating to employment, of up to £2,805 per employee. This includes the 80% of wages up to £2,500 per month, as well as employer’s National Insurance and the minimum 3% employer workplace pension contribution on their qualifying earnings. See more details here.

From August, employers will be required to pay for the employer’s National Insurance and the employer’s workplace pension contributions. The minimum 3% employer workplace pension contributions on qualifying earnings costs will not be covered by the Job Retention Scheme.

In September, the government will pay 70% of the wages reducing to 60% in October. Employers will pay the employer’s NICs and workplace pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500 whilst they are furloughed.

 WagesAuto-enrolment minimum employer contributionsEmployer National Insurance 
July 2020 Government – 80%GovernmentGovernment
August 2020Government – 80%EmployerEmployer
September 2020Government – 70%EmployerEmployer
October 2020Government – 60%EmployerEmployer

Other changes

While existing furloughs can continue, employers will not be able to furlough or re-furlough workers after the 10th June.

From July, employers will have the option to bring back employees from furlough on a part-time basis while still being able to claim under the Coronavirus Job Retention Scheme. Employers will have to pay 100% of wages for the hours worked.

Making workplace pensions work better for you.

Auto-enrolment pensions and Salary Exchange are set up and taken care of for you.

Husky mobile app phone illustration

Workplace pension admin is complex

Make sure you are compliant with the Auto-Enrolment regulation during these complicated times. Husky’s cloud-based workplace pension platform eliminates the complexity, time, risk and cost associated with managing workplace pensions.

Contact us on 0800 044 8114 or email to learn about how we can support you during this unusual, evolving period.

We are using cookies to give you the best experience. You can find out more about which cookies we are using or switch them off in privacy settings.
AcceptPrivacy Settings

husky small logo

  • Husky Cookie Policy

Husky Cookie Policy

Our Cookies Policy explains what cookies are, how we use cookies, how third-parties we may partner with may use cookies on the Service, your choices regarding cookies and further information about cookies. 

See our cookies policy here.