In these difficult and unusual times, we have been asked a number of questions from financial advisers regarding pension scheme contributions for furloughed staff, writes Keeley Paddon. Here, The SimplyBiz Group head of pensions technical summarises the key points around this area, and sets out responses to a few of the most frequently asked questions
Ultimately, employers may have three options when considering workers during challenging times for the business: Unpaid leave Redundancy Furlough With the first two options, the worker will not benefit from pension contributions. If the worker is furloughed, however, they will. In early April, the Government announced it was going to cover the minimum auto-enrolment pension scheme contributions for staff furloughed as a result of the Covid-19 crisis. The Government also clarified that: It would cover employer National Insurance and pension contributions of furloug...
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