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Posted Fri, 10 Apr 2020 11:06:44 GMT by worker bee
If someone earns NMW or NLW rates and were furloughed in March, should the 80% calculation payable to furloughed workers increase in line with new NMW NLW rates, or will they continue to be paid at the old rates until the period of furlough ends - even if furloughed through April and May? This is a pure furlough query, no training will be undertaken during furlough.
Posted Thu, 23 Apr 2020 07:55:00 GMT by HMRC Admin 5
Hello Worker Bee,

You dont take the increase of National Minimum Wage into account in your calculation, unless the furloughed employee is in training.

You can find more information at:

Work out 80% of your employees' wages to claim through the Coronavirus Job Retention Scheme

Thank You.
Posted Thu, 04 Jun 2020 22:43:26 GMT by Daford123
very similar question please... If you pay an employee holiday pay during furlough, are these also paid at the old rate or do we have to pay at the new NMW rate if holiday period is after April 1st?
Posted Fri, 05 Jun 2020 13:43:00 GMT by HMRC Admin 5
Hello.

Workers are only entitled to the National Living Wage, National Minimum Wage or Apprentices Minimum Wage for the hours they are working or treated as working under minimum wage rules.

Holiday pay, whether the worker is on furlough or not, should be calculated in line with current legislation. For more information on calculating a worker’s holiday pay during furlough please refer to:

Holiday entitlement and pay during coronavirus (COVID-19)

Thank You.
Posted Fri, 28 Aug 2020 15:22:40 GMT by Mumsie
Hello I am on furlough and have been paid for the bank holidays in April and May at the hourly rate of £8.50, this was my hourly rate before furlough started. Even though I understand that the hourly rate of pay used while on furlough can be below NMW surely a day off on holiday is in place of a working day and should be paid at the new NMW. Are my employers correct? Thank you.
Posted Mon, 07 Sep 2020 15:19:02 GMT by HMRC Admin 5

Good Afternoon,

National Minimum Wage (NMW) legislation entitles you to be paid at least the NMW for the hours treated as worked during a pay reference period.

Unless you are a salaried worker, when you are absent from work and not working, such as a period of holiday, this is not counted as working time. Holiday pay is not included in NMW legislation.

Therefore, I would recommend contacting ACAS on 0300 123 1100 to discuss your query further.

Posted Mon, 23 Nov 2020 17:45:09 GMT by Phillips Austin
what if my employer doesn't pay me overtime? And also deducts the holidays too. (Its just an example for understanding). But if i also work on weekends, what minimum wage should I get? ..
Posted Fri, 27 Nov 2020 10:02:41 GMT by HMRC Admin 5

Hello.

National Minimum Wage (NMW) is currently £8.72 for individuals over the age of 25.
If you are under 25 different age rates will apply, you can check the different rates of NMW here:National Minimum Wage and National Living Wage rates
The same NMW rate applies for hours worked on overtime or weekends.
You are entitled to receive NMW for every hour worked, holiday pay is not considered under NMW legislation.

To get advice on your specific circumstances I would recommend contacting ACAS on 0300 123 1100.

Thank \you.

Posted Mon, 07 Dec 2020 14:14:53 GMT by april.georgia
Hi I would love a little help and advice please! I was put on furlough in March due to COVID-19. At that time I was on an apprenticeship, therefore my furlough my 80% of my apprenticeship wage. In July, I completed my apprenticeship and have since been a full time member of staff, under a new contract and no longer in education, getting paid the minimum wage for my age(£6.45) which is fairly higher than the apprenticeship wage I was on. At the start of November, I was put on furlough again due to the second national lockdown. However, I am being paid the same amount of furlough money as last time which is quite a lot less. I am therefore getting paid much less than the minimum wage and even less than the apprenticeship minimum wage despite being a full time member of staff no longer in education. It was said if you have been furloughed before and are now furloughed again, to use the figures from last time. I just don’t understand how this makes sense as I’m no longer in education and am under a new contract. I’m getting paid much less than I should be. Thanks for any help!
Posted Fri, 11 Dec 2020 12:37:32 GMT by HMRC Admin 5
Hello april.georgia.

You are only entitled to the NMW for time spent working. If you are furloughed, then you are not working for NMW purposes.

The CJRS Teams will need to provide a response to your question on how your employer should be applying the scheme to your pay.
Although you mention NMW, the question is whether you are being paid the correct amount of furlough pay.
I have asked the CJRS team for a response and will advise you as soon as I receive this.

Thank You.

Posted Tue, 15 Dec 2020 17:08:18 GMT by HMRC Admin 10
Hi

When on Furlough you are not working , so NMW/ NLW doesn't appy.

The amount the employer can claim is based on the 2019/20 tax year, when you were on the payroll in that tax year.

Thankyou.

Regards.
Posted Tue, 15 Dec 2020 17:36:57 GMT by april.georgia
Hi thanks for getting back to me. How come I am getting paid my wage from last year when I was in education, on an apprenticeship and under a different contract? My apprenticeship ended in July and I am now employed full time and was receiving normal pay for months, not apprenticeship pay but my furlough pay has been worked using previous furlough pay from when I was on an apprenticeship..please help as no one can answer my question and I am only receiving £140 a week instead of my pay of what should be £200 Thank you you in advance!
Posted Thu, 17 Dec 2020 08:27:59 GMT by andrewmiller55 Miller
When will these rates be updated? https://www.gov.uk/national-minimum-wage-rates
Posted Thu, 17 Dec 2020 08:39:38 GMT by HMRC Admin 5
Hello April Georgia.

As this is a contractual matter, if you are unable to obtain the information from your employer please call ACAS on 0300 123 1100 for advice on this.
 
If you have further queries regarding NMW, the National Minimum Wage Pay & Work Rights helpline would be able to answer your question.
The telephone number to call is 03001231100  or write to                                                                             
National Minimum Wage enquiries                                                                    
Freepost PHQ1                                                                                                  
Newcastle Upon Tyne                                                                                       
NE98 1ZH  

Thank You.                                                                                                                    
 
Posted Wed, 30 Dec 2020 12:33:33 GMT by anthony constantinou
Here we get some good suggestions and advice. Thanks guys
Posted Tue, 05 Jan 2021 15:12:59 GMT by HMRC Admin 5

Good Afternoon Andrew Miller.

In the Chancellor’s comprehensive spending review on the 25th November new National Minimum Wage and National Living Wage rates were announced, effective from 6th April 2021.

Further information can be found here: UK government announces pay rise for millions of people

Thank You.

Posted Wed, 06 Jan 2021 00:41:18 GMT by Denise1609 Smith
I am on minimum wage and I was placed on furlough in March and paid 80% of my salary based on the old rate of £8.21 right through until end of August even though the minimum wage was increased 1st April which I understand . However I returned back to work on 1st September and received full pay and my minimum wage was increased to £8.72 and my contracted hours also increased . I have been back at work for four months to now be furloughed again ( I work in a school ) to be told that my 80% pay will be based on 80% pay of my wage dating still back to February 2020 even though I’ve worked a full four months on new hours and new pay is that correct?
Posted Tue, 12 Jan 2021 09:02:08 GMT by HMRC Admin 5

Hello Denise.

The CJRS Teams will need to provide a response to your question as it is about how an employer should be applying the scheme to a worker’s pay.
Although you mention NMW, the question asked is whether you are being paid the correct amount of furlough pay.

Please call the JRS advice line on 0800 024 1222 who can advise on this.

You are only entitled to the NMW for time spent working. If you are furloughed, then you are not working for NMW purposes.

I hope this helps.

Thank You.

Posted Fri, 22 Jan 2021 15:02:20 GMT by Megan Wilson
Good Afternoon, I am just looking for a bit of advice if possible, I am an apprentice, and I started working with the company I am with in June 2019, and I am 20 years old. I have been receiving full pay since June 2020 however since we was placed in national lockdown in November, I have been receiving furlough pay, I am only receiving 80% of an apprenticeship pay. I need some advice on how what I should do, there’s no possible way I can live from this money. I understand that for the furlough to be calculated they need to take it from last years earnings, but I wasn’t even on the same contract as I was last year. I’m 20 years old, after being with the company nearly two years and earning £500 a month?
Posted Fri, 12 Feb 2021 11:08:21 GMT by HMRC Admin 4

Hi,
Apprentices can be furloughed in the same way as other employees and can continue to train whilst on furlough. Employers must pay their Apprentices at least the Apprenticeship Minimum Wage/National Living Wage/National Minimum Wage as appropriate for all the time they spend training.

For the extended scheme from 1 November, we appreciate that a minority of employees may have seen an increase in earnings over the COVID period but others have not. To be fair to all claimants, the default reference pay period for those employees in continuous employment has remained as that of the pre-COVID period.

This means that for the greatest number of employees and employers, it is not necessary to recalculate the basis of the claim. This means individuals can sustain 80% of their pre-COVID income, up to a maximum grant of £2,500 per month.

The pre-COVID pay reference period is used for all individuals who were employed then. To move away from a pre-COVID reference period would complicate the scheme, increase the burden on employers and could be seen as unfair to the majority of employees who were in a better position before COVID.

We understand this has been a very difficult time for many and people will feel it is unfair if they are not eligible for the CJRS. Further information about additional support available can be found at:

Work and financial support

Business support

​​​​​​​
I hope this helps.

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