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Holiday pay on Furlough

Holiday Pay on Furlough

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I have been arranging holiday pay on weekly payrolls in the last few weeks for clients, whereby the Furloughed employees receive 100% at current NMW rates and in other weeks their Furlough Pay has been shown under a seperate heading on the payslip.

A monthly payroll client has asked for his Furloughed staff to receive 1 weeks holiday pay in their months pay, and I am wondering if I am looking too deeply into the calculations as am unsure about something.  The employer has claimed furlough for the 31 days in May and I understand that the pay needs to be topped up by 20% for holiday pay, and also increased to reflect current NMW rates.

The employer wants the holiday pay shown in full on the payslip with the remaining Furlough pay shown under a separate heading.  When I calculate the weeks holiday pay (which is for 5 working days) at current NMW rates.  In the month of May under HMRCs Furlough guidance for variable pay employees, you divide the annual figure by 365 days then multiply by 31 days for May (which has been claimed).  On the payslip, giving one weeks holiday pay (which equates to 5 working days), do I reduce the furlough pay on the payslip amount, by 5 days of the HMRC calculation or by 7 days?  My line of thinking is that HMRC are treating a week as 7 days.  

The employer does not want to underpay the employees the correct amount of Furlough pay in this scenario.

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By LW64
01st Jun 2020 12:22

They are different rates aren't they.
So the holiday pay at the actual ££ that you paid in full, presumably this is for 5 worked days of a 7 day period, but it is still a week @ current NMW.
The furlough paid days would be 31 days - 7 days @ 80% or whatever rate you are using which isn't necessarily 80% of current NMW.

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Replying to LW64:
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By Carolynne
01st Jun 2020 12:32

Many thanks LW64, I was thinking that 7 days of what has been claimed under furlough would be correct, as that is what has been done in essence, for those on weekly pay.

It was just one of those moments that made me stop and think, with it each side taking a different amount of days for the same period.

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