Bookkeeping Bites – Minimum Wage & Furlough Pay

The new minimum wage for 2020 came into force on the 1st April 2020……..
Are YOU up to date? How does it work with furloughed staff?
 
The new National Minimum Wage (NMW) for over 25’s, from 1st April is 💥 £8.72 💥
 
See below for the details of all of the new NWM:
 
So, how does this work with furloughed staff?
 
Big G is clear on this, they state that:
 
🤓 “Furloughed workers who are not working can be paid the lower of 80% of their wages or £2,500 even if, based on their usual working hours, this would be below their appropriate minimum wage” 🤓
 
 
Basically, the 80% furlough pay does NOT need to be adjusted to reflect the new National Minimum Wage……
 
BUT! WATCH OUT!!! As soon as your staff:
 
🤓 Carry out any TRAINING on periods of furlough
 
🤓 Return to ANY working hours after their furlough period has ended
 
💥 they MUST be paid the appropriate hourly minimum wage amount 💥
 
Hope this helps, if this throws up any questions, just shout – always happy to help.
 
Stay safe everyone 😍😍😍

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