Coronavirus Job Retention Scheme: Minimum Wage

(asked on 26th January 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to ensure that employees supported through the Coronavirus Job Retention Scheme are paid the national minimum wage.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 2nd February 2021

Individuals are only entitled to the National Living Wage (NLW)/National Minimum Wage (NMW) for the hours they are working or treated as working under the NLW/NMW rules.

Therefore, under flexible furloughing, furloughed workers will be paid NMW for any hours the individual spends working. For hours not worked, i.e. time furloughed, workers will be paid the lower of 80 per cent of their salary, or £2,500. This amount – for hours not worked – is the amount the employer can claim for through the CJRS.

If they wish, employers can top up these payments voluntarily.

If workers are required to complete training courses during the hours they are furloughed, then they must be paid at least the appropriate 2020/21 NLW/NMW for the time spent training, even if this is more than the 80 per cent of their monthly earnings that will be subsidised. Any training should be carried out in line with the latest public health guidance.

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