The furlough scheme was designed and delivered by the Government of the United Kingdom on behalf of all the people of the United Kingdom, wherever they live. 13.8% of (Furlough Pay – Secondary Threshold) = Employers NI If an employee is only paid furlough pay then the values can be taken from our reports without need for further calculation. Employers must pay the full employment costs in respect of any part time hours worked by furloughed workers. You may be able to do some work for your employer while on furlough. Other conditions of claiming CJRS. The Labour Relations Agency (LRA) and Advice NI offer free, confidential and impartial advice on all employment rights issues for residents of Northern Ireland. For employers, if an employee does end her maternity leave early and is still in time to benefit from the furlough scheme, then it would be prudent to offer the opportunity to her. Job losses in Northern Ireland could rise sharply as furlough scheme ends, says charity. © 2021 KPMG, an Irish partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. If you’re off sick, find out what your rights are for sick pay. From 1 July, furloughed workers can return to work on a flexible part-time basis. The flexibility in the new JRS, whilst welcome, inevitably creates further complexity. Importantly, from 1 July the number of employees included in a claim cannot exceed the highest number of employees included in a claim submitted under the current scheme. To … For queries or advice about Child Maintenance, contact the Child Maintenance Service. The furlough scheme will run until 30 September 2021. Secondary threshold for NI = £169 per week or £732 per month for July 2020 You’ll still be paid by your employer and pay taxes from your income. Since the last time you logged in our privacy statement has been updated. You will need to be able to return to work for the employer that has placed you on furlough if they decide to stop furloughing you, and you must be able to do any training they require while on furlough. If your contract allows, you may also take on other employment and this will not affect the grant that they can claim for you under the scheme. You can use it to report a problem or suggest an improvement to a webpage. Stay two metres apart from colleagues and customers at all times. Your employer could pay 80 per cent of your regular wages through the Coronavirus Job Retention Scheme, up to a monthly cap of £2,500. On the furlough scheme, ... Campaign to fund NI Protocol judicial review raises just over a third of £150,000 target O’Neills managing director Kieran Kennedy to retire at end of the year Invest NI offers a wide range of tools and business tutorials to support improvements in business processes and growth. In summary, up to and including that date: Following his earlier announcement that the JRS would be extended until 31 October 2020, but be made more flexible with employers bearing some of the costs, the Chancellor confirmed on 29 May how the scheme will start to change from 1 July â rather than from 1 August as had been expected. Find out more about pay during furlough. British Chancellor Rishi Sunak confirmed the move in the House of Commons. Call 0800 587 0912Email dcs.incomingpostteamdhc2@nissa.gsi.gov.uk, Call 0800 587 2750 Email customerservice.unit@communities-ni.gov.uk, Call 0800 587 0912 Email dcs.incomingpostteamdhc2@nissa.gsi.gov.uk, Contact your local Jobs & Benefits office. We want to make sure you're kept up to date. If your query is about another topic, select ‘Other’ from the drop-down menu above. If you have a question about a government service or policy, you should contact the relevant government organisation directly as we don’t have access to information about you held by government departments. Check which employees you can put on furlough. You should not use public transport to get to work unless absolutely necessary and you should stay apart from other passengers. This feedback form is for issues with the nidirect website only. When submitting claims in respect of an employee on flexible furlough, the employer will be required to include information on actual hours worked, as well as the usual hours that the employee would have been expected to work under their contract in the relevant claim period. Weâre the business advisors of choice for companies of every size and in every sector - right across Northern Ireland. if(window.da2a)da2a.script_load(); As noted above, HMRC is expected to publish further guidance on 12 June which addresses flexible furloughing and how to calculate claims under the new scheme. This could be the case where, for example, historical overtime forms a significant part of the reference pay on which furlough payments are based, but similar levels of overtime are not currently available. This is known as 'flexible furlough'. Additionally, returning to work part time might potentially leave some employees at a financial disadvantage. The timing of this is unclear, but once available employers should review its specific requirements â as well as those of HMRCâs guidance â to confirm the precise requirements of the new scheme. Your employer could pay 80 per cent of your regular wages through the Coronavirus Job Retention Scheme, up to a monthly cap of £2,500. When does furlough end? For queries or advice about historical, social or cultural records relating to Northern Ireland, use the Public Record Office of Northern Ireland (PRONI) enquiry service. Job Retention Scheme (JRS) & flexible furlough. This article is more than 3 months old. those who are shielding); and. Under the extended scheme employees can continue to receive 80% of their salary, subject to the cap, but employers will need to share the burden of paying NI and pension contributions from August 2020 onwards. Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that let learners to study at their own pace in and outside of the classroom, offering mathematics, science, computer programming, history, art history, economics, and … To pay 10% or 20% as the furlough scheme states and pick up the tax on NI is a pretty big ask when you're trying to keep the business afloat and pay your bills.’ Of course, this … There are a range of supports to business to help them to pay wages and benefit supports to eligible individuals. This is what you need to know. Don't include any personal or financial information, for example National Insurance, credit card numbers, or phone numbers. Further updates followed regarding details of the “flexible furlough scheme” in operation from 1 July 2020 and then the start of employers’ contributions to furlough pay from 1 August 2020 (starting with employer NI and pension contributions and rising to 20% of pay from October 2020) The employer will continue to pay employer’s national insurance contributions and pension contributions. This value is deducted from the furlough payment, and the claimable employer’s NI is then 13.8% of the remainder. Find out more about how the scheme is changing.. Claims for furlough … As a result of the recent announcement, and the upcoming lockdown the Job Support Scheme, which was scheduled to come in on Sunday 1st November, has been postponed until the furlough scheme ends. Further, whilst employers must still pay employees at least 80 percent of their reference pay subject to a cap of £2,500 per month pro rata in respect of non-working hours: Employers will therefore bear an increasing portion of pay for their furloughed workersâ non-working hours. Speaking in the Commons he said: "I also want to reassure the people of Scotland, Wales and Northern Ireland. Find out how at: If you’re not eligible for Statutory Sick Pay (SSP), for example, if you’re self-employed or earning below the Lower Earnings Limit of £120 per week, can make a claim for Universal Credit or Contributory Employment and Support Allowance: You have the right to take time off work to look after a dependant. We will not reply to your feedback. The scheme will close on 30 September 2021 and employers will need to bear all employee costs again. For queries or advice about Penalty Charge Notices (PCNs), including parking tickets and bus lane PCNs, email dcu@infrastructure-ni.gov.uk. Please take a moment to review these changes. If you’ve lost your job as a result of coronavirus (COVID-19) and want to develop your skills to help you look for work, find out what online training is available. //-->. If you wish to check on a problem or fault you have already reported, contact DfI Roads. Which employees might need to be furloughed by 10 June in order to be eligible for the new JRS; What support the JRS can offer during that period; and. The furlough scheme is extended until the end of September 2021 to protect jobs and incomes across the UK as businesses slowly emerge from a third lockdown. More than 100,000 workers in Northern Ireland were still on the furlough scheme in July, according to HM Revenue and Customs (HMRC). Detailed HMRC guidance on how the new scheme will work is expected on 12 June. You will not receive KPMG subscription messages until you agree to the new policy. Reduced Covid furlough scheme is an insult, say northern leaders. Furloughed employees will remain entitled to receive at least 80 percent of their reference pay for non-working time (subject to a cap) but the portion of reference pay covered by the JRS grant will reduce to 70 percent from 1 September 2020, and to 60 percent from 1 October 2020. In developing flexible furlough plans, employers should ensure their criteria for selecting which furloughed workers will return to work part time â and what hours they work â are fair, reasonable and objective and neither directly, nor indirectly, discriminatory. Steps to take before calculating your claim. If you're entitled to Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay and Statutory Shared Parental Pay, you will not be disadvantaged if you have been furloughed. For queries or advice about claiming compensation due to a road problem, contact DFI Roads claim unit. You’ll still be paid by your employer and pay taxes from your income. For queries or advice about criminal record checks, email ani@accessni.gov.uk, Application and payment queries can be emailed to ema_ni@slc.co.uk. The employer must bear the contractual salary costs of any part time hours worked by a furloughed employee, together with the associated employerâs NIC and minimum pension contributions. The fall would have been much worse without the furlough scheme under which the government pays the … “Today the Prime Minister said the government’s Coronavirus Job Retention Scheme (CJRS) – also known as the Furlough scheme – will remain open until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. Contacts for common benefits are listed below. A minimum claim period of one week will apply under the new JRS, though claims can still be submitted in respect of longer periods. You will not continue to receive KPMG subscriptions until you accept the changes. If your query is about another benefit, select ‘Other’ from the drop-down menu above. The furlough scheme will be extended until the end of March next year and will apply to Northern Ireland. You can find information on what jobs are available, how to find a job, financial support and where to get careers advice at Jobs and Skills. HMRC have issued detailed guidance on how the Job Retention Scheme will operate from 1 July 2020. From 1 July furloughed workers can return to work part time. This is sometimes called 'compassionate leave'. From 1 July 2021: the government will pay 70% of wages, capped at £2,187.50 each month; the employer will need to pay 10% (up to £312.50) Employers can agree with employees that they are to be âfurloughedâ under the scheme; Furloughed workers cannot, subject to some limited exceptions, undertake any work for their employer (or a connected company); HMRC will pay the employer a grant equal to: 80 percent of the furloughed workerâs reference pay (these payments are capped at £2,500 per month), which represents the furloughed workerâs minimum entitlement to pay under the scheme; and. Use any protective equipment provided, where this is required. The Coronavirus Job Retention Scheme has been extended until 30 September 2021. This is known as being ‘on furlough’. What you're entitled to be paid when you're off sick varies from job to job and there are also different sick pay schemes in operation. For queries or advice about birth, death, marriage and civil partnership certificates and research, contact the General Register Office Northern Ireland (GRONI) by email gro_nisra@finance-ni.gov.uk. Specifically, employers should start to think about: Given the tapered reduction in financial support offered by the JRS, employers who currently make discretionary âtop upâ payments to furloughed workers should also consider whether those agreements remain sustainable, or might need to be renegotiated. Their full contractual pay in relation to any part-time hours worked; and, 80 percent of their reference salary (capped at £2,500 per month. However the employer will also have to pay an additional 20% to top up the 80% total up to a cap of £2,500. If you have a comment or query about benefits, you will need to contact the government department or agency which handles that benefit. Employers will continue to pay furloughed staff 80% of their usual wages up to £2,500 per month – or more if that's been agreed with the employee or worker. ... And while it welcomed the Chancellor's move to replace the furlough scheme… If you do have to visit other locations including homes, keep this short, minimise all physical contact and sanitise any surfaces you touch before you leave. Employees will still pay the taxes … Almost all the extra £411.9 million announced by Chancellor Rishi Sunak on Wednesday will go … That means about 14% of NI employee jobs are currently furloughed. Belfast City Council has told BBC News NI it placed 308 full-time and part-time staff on furlough at the beginning of the scheme, and that 120 staff remained on furlough. Choose whether or not to include the Employers NI Employment allowance (£3,000.00 for the 2020 tax year) ... the furlough scheme is set up based on a monthly amount, not a daily limit. From 1 November 2020 to 30 June 2021, the government will pay 80% of wages, capped at £2,500 each month. The easiest way to find out whether this applies to you is to speak to your employer from the time, your pension scheme, or check your old payslips. Job Support Scheme : Update. If you are changing to part-time work or are considering a job where the salary is worked out pro-rata, use the pro-rata Salary Calculator to see how your take-home pay will be affected. If you and your employer both agree, your employer might be able to keep you on the payroll if they’re unable to operate or if they've reduced or no work for you to do because of coronavirus (COVID-19). A further Treasury Direction will also be needed to set out the legal basis of the new scheme. Carefully follow the strict physical distancing measures put in place by your employer. Their workforce requirements over the next five months, in particular taking account of: Which of their currently furloughed workers could be able to return to work part time, and which could not (e.g. If you wish to report a problem with a road or street you can do so online in this section. For queries or advice about rates, email:rating@lpsni.gov.uk, For queries or advice about property valuation, email:valuation@lpsni.gov.uk, For queries or advice about land registry, email:CustomerInformation.LandRegistration@finance-ni.gov.uk, For mapping queries, email:Mapping.Helpdesk@finance-ni.gov.uk. For queries or advice about careers, contact the Careers Service. Employers must make up the difference of 10%, this ensures the employee still receives 80%. All rights reserved. As he announced a new four-week lockdown for England, UK Prime Minister Boris Johnson also announced that the furlough scheme … Changes have been made to Statutory Sick Pay if you are self-isolating because of Coronavirus (COVID-19). Find out more at: If you’ve lost your job, or have had your hours reduced as a result of coronavirus (COVID-19), advice and support is available: Demand is high for labour in sectors like health, retail and agri-food. Get the latest KPMG thought leadership directly to your individual personalised dashboard. Share this page If you’re currently not working because you’re in self-isolation; you have care responsibilities or your employer has suspended business, your wages are likely still to receive an income. Don't include any personal or financial information, for example National Insurance, credit card numbers, or phone numbers. Employers can also consider other approaches to managing people costs, such as lay-offs, short-time working, or other flexible working arrangements. Whilst the extension to the scope and duration of the furlough scheme may be an indication of the Government’s level of concern about the wider economic outlook, there is no doubt that this announcement offers much needed support and reassurance to Northern Ireland and GB Businesses struggling with significant uncertainty amid a resurgence of the virus, writes Eunan Ferguson, Director, … Additionally, from 1 August 2020 employers will no longer be able to claim the JRS grant in respect of any employerâs NIC and pension contributions. Advice and guidance to help reduce the risk of spreading coronavirus while working or how to get help if your job has been affected as a result of the coronavirus (COVID-19). To use the scheme, the steps you’ll need to take are: Check if you can claim. Job Retention Scheme: New flexible furlough scheme rules HMRC have issued detailed guidance on how the Job Retention Scheme will operate from 1 July 2020 KPMG in Northern Ireland In light of that assessment, which employees should be furloughed â and when this should be done. As before, the government … This could require careful planning and quick adjustments to previously scheduled shifts patterns, and will mean that important decisions which affect individualsâ ongoing eligibility for the scheme must be made before HMRCâs guidance is published on 12 June. If the pay has been topped up you will need to apply the calculation. The Chancellor has announced how the JRS will change from 1 July 2020. The furlough scheme involves the government paying the wages of people … You may be able to do some work for your employer while on furlough. Existing participants can save up to £933* per year on their childcare costs through the scheme until 1st September after their child's 15th birthday (or 16th birthday if they have a disability). The scheme will pay up to 80% of employees wages up to £2,500 a month. We want to ensure that you are kept up to date with any changes and as such would ask that you take a moment to review the changes. Click anywhere on the bar, to resend verification email. We expect that the 12 June guidance will deal with the calculation of those hours which, for those with irregular hours, may be quite complex. Essentially, they were able to pay lower NI contributions as they were making their own private pension arrangements. The furlough scheme (Coronavirus Job Retention Scheme) will run until 30 September 2021. Flexible furlough scheme details This must be done in accordance with existing employment law. Furlough scheme changes. Employers will continue to pay furloughed staff 80% of their usual wages up to £2,500 per month – or more if that's been agreed with the employee or worker. Expand. For queries or advice about pensions, contact the Northern Ireland Pension Centre. Employers should urgently consider how these changes to the JRS will affect their businesses, and the practical implications for return to work planning. This scheme offers support to employers who bring their staff back to work gradually. Claims under the new JRS can be submitted from 1 July, and the last claims under the existing scheme must be submitted by 31 July. For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance. The scheme allowed employers to furlough employees, and the Government would then pay 80 percent of employee wages - capped at a total of £2,500 per month. The furlough scheme has been extended until 30 September 2021. Furlough Scheme in September 2020 The Government contribution drops to 70% of wages up to a cap of £2,187.50. From 1 July 2021, the level of grant will be reduced and you will be asked to contribute towards the cost of your furloughed employees’ wages. Our privacy policy has been updated since the last time you logged in. Before these changes come into effect, employers should model the impact for their businesses of increased flexibility on working and reduced financial support, and what this means in terms of new or continuing participation in the JRS. Because employees must have been furloughed for at least three weeks prior to 1 July in order to participate in the new scheme, if an employer intends a worker who has not previously been on furlough to be eligible for the JRS after 30 June, that employee must be furloughed for the first time by 10 June at the latest. [CDATA[//> you are self-isolating because of Coronavirus COVID-19. Do n't include any personal or financial information, for example National contributions... Initial registration careers, contact DFI Roads this ensures the employee still 80! Kpmg subscriptions until you agree to the scheme as well the practical for. A road problem, contact the Labour Relations agency employer will continue in its current form 30. About claiming compensation due to a webpage the workplace, you will not continue to KPMG... Subscriptions until you agree to the JRS will operate on its current form 30! Use any protective equipment provided, where this is known as being on... The extra £411.9 million announced by Chancellor Rishi Sunak on Wednesday will go … Job support:. Not the furlough rate scheme at the start of the new scheme who their. Penalty Charge Notices ( PCNs ), including parking tickets and bus lane PCNs, email dcu infrastructure-ni.gov.uk. Fault you have a comment or query about benefits, you will not continue to pay wages and benefit to. Additionally, returning to work unless absolutely necessary and you should discuss your working arrangements with your.., you will need to apply the calculation of the pandemic employees a! Sunak on Wednesday will go … Job support scheme: Update individual personalised.... The furlough rate needed to set out the legal basis of the remainder minimum to! Share this page