Furlough pay

[Alex1407]

Hi,
I have been furloughed by my employer but there seems to be an awful lot of miscommunication and misunderstanding between not only myself, but other employees and the employer. The main cause for concern with miscommunication and misunderstanding is how they've calculated the first furlough pay as there appears to be no consistency across employees with it.

3 Weeks ago was the first pay of the current financial year (paid bi-weekly) and this was received on Thursday 9th April instead of the Friday due to it being Good Friday. This pay covered 23/03/2020 to 05/04/2020 and all of us were furloughed on the 24/03/2020 meaning some people in that week (myself included) worked the first day of the pay period. I don't believe the first furlough I received is correct as there was roughly a £100 difference between the first furlough payment (period of 13 days) and the second furlough payment (full 14 days) when there was only one extra day of furlough in the following pay period. The example my employer has since said the first furlough was worked out as the following;
Average weekly wage of £200
Period 1 week 1:
Minus £100 for money earned in the 1 day of work outside of the furlough period
Leaves an average of £100 remaining
80% of the £100 leaves £80 as first week furlough payment

Period 1 week 2:
80% of* £200 is £160
Total furlough for period 1 £240

Period 2 Week 3&4:
Same weekly average of £200
80% of which is £160
Multiplied by 2 to cover 2 weeks is £320
Total furlough for period 2 £320

Is anyone able to shed some light on this as to whether this is correct or not?

Thanks in advance

[ULA]

The calculation will potentially differ between employees based on when each individual joined the company, whether they are on a fixed or variable based and wages/salary and what was paid to them in the last pay period before 19 March 2020.*

So for 23 March you should have received your normal salary for that day then the rest of the week and subsequent weeks would have been based on the furlough scheme from 24 March to 5 April to cover the pay period.*

Have you asked your employer to provide you with a breakdown of the information they provided when they submitted your details onto the HMRC portal?

[Alex1407]

The calculation will potentially differ between employees based on when each individual joined the company, whether they are on a fixed or variable based and wages/salary and what was paid to them in the last pay period before 19 March 2020.

So for 23 March you should have received your normal salary for that day then the rest of the week and subsequent weeks would have been based on the furlough scheme from 24 March to 5 April to cover the pay period.

Have you asked your employer to provide you with a breakdown of the information they provided when they submitted your details onto the HMRC portal?

I've just sent you a DM going more in depth with what my employer has said

[ULA]

Thanks for the information via PM. The HMRC calculation is based on the following breakdown:

Week 1 & 2 on furlough

80% of average salary = £209.37/7 (days in the week) x 13 (24 April to 5 May) = £388.87
*

In addition, the pay for 23

^rd

March would have been as per your normal day rate of pay based on a pro-rata of your weekly pay.

Week 3 & 4 on furlough

80% of average salary = £209.37/7 (days in the week) x 14 (9-14 April) = £418.78

So, the reclaimed amounts of 80% of salary from HMRC are correct.*

Hope that all makes sense.