What happens when I’m furloughed?
April 18, 2020 • 1 min read
The government has introduced the coronavirus job retention scheme to help businesses keep people employed during the coronavirus pandemic.
As part of the scheme companies can furlough workers. The government will pay up to 80% of furloughed workers’ salaries, up to £2,500.
If you’re furloughed, you can use our simple calculator to see how much you’ll get paid.
When you’re furloughed, your employer gets a grant which they’ll use to pay 80% of your wages, up to a maximum of £2,500 a month.
Your employer can choose to top up the 80%, but they don’t have to. They can’t pay you less than the 80%.
You’ll still have to pay income tax and national insurance.
If you’re paying back a student loan or contributing to your pension, you’ll still have to pay those too (although you might be able to ask to pause your pension contributions – talk to your employer to learn more).
If you’re on a salary, your monthly furlough amount is calculated from that.
If your pay is variable and you’ve been working for your company for a year or more, your furlough pay will be calculated either from the amount you earned in the same month last year, or by working out the average of your monthly earnings from your last year – whichever is higher.
If your pay significantly changes because you’ve been furloughed, you could be entitled to more support from the welfare system.
You’re not allowed to work for your employer, or do anything that could make them money whilst you’re on furlough.
You can find other work, if your contract lets you. But, you’ll need to bear in mind that you’ll need to return to work whenever your company asks you to come back (and in certain circumstances, you can be asked to come back sooner than you originally agreed).
You might be able to do required training courses, but your employer will need to make sure you’re paid minimum wage whilst you’re doing it – even if it means that you’re paid more than the 80% grant. Ask your company if you’d like to know more.
You can also volunteer. If you’d like to volunteer for the NHS, you can read the latest information here.
Written by Jack Cully who lives and works in London building useful things. You can follow him on Twitter