Employee has a basic salary of £2,250 per month. Average, non-discretionary commission over 12 months is £2,000, which would lead to gross pay of £4,250.
The employer has, as a part of the furlough agreed with employees, only committed to paying 100% of basic. However, he's asking about including commission as well. I said I would do some comparitive calculations.
If he pays 100% of basic, then there's a net cost to the company of £505.40.
If he pays 100% of basic and commission, the next cost is around £2,200.
If he pays 80% of salary and 80% average commission subject to the £2,500 cap, there is no net cost to the company, and the employee is better off than 100% of basic only.
Does this sound right?