UK to require employers to pay 20-30 pct of furloughed wage cost - The Times

Reuters

Posted at May 23 2020 03:35 PM

A woman wearing a protective face mask walks past Lloyd's building in London, following the outbreak of the coronavirus disease (COVID-19), London, Britain, May 6, 2020. Henry Nicholls, Reuters/File


LONDON - The United Kingdom has drawn up plans to require employers to cover 20 percent to 30 percent of furloughed employees' wages starting August to reduce the vast burden of the coronavirus crisis on government finances, The Times newspaper reported.

The United Kingdom on May 12 extended its job retention scheme - the centerpiece of its attempts to cushion the coronavirus hit to the economy - by four months but told employers they would have to help to meet its huge cost from August.

"The Treasury has drawn up plans that would require employers to cover between 20 and 30 percent of people’s wages," The Times said. 

"They would also be required to cover the cost of employer’s national insurance contributions, on average 5 percent of wages."

The UK has over 250,000 confirmed coronavirus cases, with 36,000 deaths, according to government figures.