## Calculating Furlough Pay for Flexible Furlough Claims

Since 1^{st} July, the way that furlough payments are calculated has changed. This article will show the new calculations that should be used when calculating the furlough proportion of pay, which will be claimed back under the Coronavirus Job Retention Scheme 2 (CJRS2).

## Total Furlough Pay Amount

The rules to calculate the amount of furlough pay owed to employees has not changed. The calculations used for March to June should still be used to calculate the starting amount for the furlough pay calculation.

- It is based on either the average basic pay for 2019/2020 tax year, or the pay from the same period in the previous year - whichever is higher
- If employees have had a pay rise since the CJRS has been in place, the furlough payment will be based on the previous pay amount. This may well be below the current NMW/NLW

## Furlough Hours

The usual hours worked are required to calculate the amount of furlough pay that is due to employees. More information about how to calculate the usual hours can be found here: **WFM - Flexible Furlough: Usual Hours**** **

Once the usual hours are known, the furlough hours need to be calculated using the following formula:

*Usual Hours - Actual Hours = Furlough Hours*

For example, the usual hours for the claim period are 178 and the employee has worked 80 hours. The calculation is:

*178 – 80 = 98 furlough hours*

## Furlough Pay Amount

Using the normal furlough pay amount (the total amount for the pay period), calculate the furlough amount using the following formula:

*Furlough Pay Amount **÷ Usual Hours x Furlough Hours = Furlough Pay*

For example, the employee’s furlough pay amount is £1711.54 which is based on them working 40 hours a week with a £25,000 salary.

*£1711.54 **÷ 178 x 98 = £942.31 (Furlough Pay Amount)*

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