An employee’s reference pay will depend upon whether or not they were on the payroll and subject to an RTI submission for 2019/20 on or before 19 March 2020. Where that is the case their reference pay will be that used under previous furlough claims. Where the employee has joined since that date or not subject to an RTI submission prior to 19 March the reference pay will generally be that for the last pay period ending before 30 October.
There are exceptions to these rules and complications for those working variable hours and with variable rates of pay.
Reference pay: calculating 80% of wages
If an employee was not previously eligible for CJRS, 80% of wages must be calculated for employees:
- on a fixed salary – 80% of the wages payable in the last pay period ending on or before 30 October 2020
- whose pay varies – 80% of the average payable between (these dates are inclusive) the start date of their employment or 6 April 2020 (whichever is later) and the day before their CJRS extension furlough periods begins
80% of wages is capped at the maximum wage amount which will be calculated in the in the way it was for CJRS before the extension .
We can of course assist you with your claims, or alternatively prepare them on your behalf.
Need more information?
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