Guidance

# Examples of how to calculate your employees' wages

Updated 29 October 2021

The Coronavirus Job Retention Scheme closed on 30 September 2021.

## 1. Work out your claim period

### 1.1 Example of a pay period spanning 2 months

Employee has a 4-week pay period which is from 20 May 2021 to 16 June 2021. A Ltd cannot claim for this as a single period so makes 2 separate claims:

• 20 to 31 May 2021
• 1 to 16 June 2021

Read guidance on a pay period spanning 2 months.

## 2. Work out your employee’s usual hours and furloughed hours

### 2.1 Example of how to work out usual hours for employees who are contracted for a fixed number of hours where the employee’s reference date is 19 March 2020

An employee is contracted to work for 37 hours in each week, across 5 working days. The employee is paid weekly. B Ltd looks to make a flexible furlough claim for the period starting from 1 August 2020 until 10 August 2020 (10 calendar days). There are 2 pay periods partially in this claim period:

• 29 July to 4 August 2020
• 5 August to 11 August 2020

B Ltd calculates the usual hours for the days in each pay period that are in the claim.

B Ltd is calculating on a pay period basis so they must round the nearest number of usual hours for each pay period up or down to the nearest whole number.

The employee’s reference date is 19 March 2020.

B Ltd first calculates the usual hours for the days they are claiming for in the pay period 29 July 2020 to 4 August 2020 (which are 1 August 2020 to 4 August 2020) as follows:

1. Start with 37 hours (the hours the employee was contracted for at the end of the last pay period ending on or before the employee’s reference date).

2. Divide by 7 (the number of days in the repeating working pattern, including non-working days).

3. Multiply by 4 (the number of calendar days in the pay period (or partial pay period) the employer is claiming for – this is a partial pay period) = 21.14.

4. Round up or down to the nearest whole number if the outcome is not a whole number = 21.

B Ltd next calculates the usual hours for the days they are claiming for in the pay period 5 August 2020 to 11 August 2020 (which are 5 August 2020 to 10 August 2020) as follows:

1. Start with 37 hours (the hours the employee was contracted for at the end of the last pay period ending on or before the employee’s reference date).

2. Divide by 7 (the number of days in the repeating working pattern, including non-working days).

3. Multiply by 6 (the number of calendar days in the pay period (or partial pay period) B Ltd is claiming for – this is a partial pay period) = 31.71.

4. Round up or down to the nearest whole number if the outcome is not a whole number = 32.

### 2.2 Example of calculating usual hours for a fixed hours employee whose reference date is 30 October 2020 and their first pay period ends after 30 October 2020

An employee started work for CD Ltd on 12 October 2020. They are paid on the last day of each month, starting on 31 October 2020.

The PAYE Real Time Information (RTI) Full Payment Submission (FPS) submission notifying their first payment of wages was received by HMRC on 29 October 2020, and the employee’s reference date is 30 October 2020, even though their first pay period ends after 30 October 2020.

The employee is contracted to work on a shift pattern of five 7-hour shifts in each week. This working pattern repeats every 7 days.

The employee agrees to be placed on furlough from 2 November 2020 until 30 November 2020 (29 days). CD Ltd calculates the usual hours for this partial pay period:

1. Start with 35 hours – these are the hours the employee was contracted for in their repeating working pattern at the end of the latest pay period for which a PAYE Real Time Information (RTI) Full Payment Submission (FPS) was submitted to and received by HMRC on or before the employee’s reference date (30 October 2020) – which in this example, is 7 hours multiplied by 5 days.

2. Divide by 7 (the number of days in the repeating working pattern, including non-working days).

3. Multiply by 29 (the number of calendar days in the pay period (or partial pay period) the employer is claiming for) = 145.

4. The outcome of step 3 is a whole number, so does not need to be rounded up to the next whole number.

### 2.3 Example of calculating usual hours for a fixed hours employee whose reference date is 2 March 2021 and their first pay period ends after 2 March 2021

An employee started work for an employer on 22 February 2021. They are paid fortnightly, and their first pay date is 3 March 2021. The day they are paid is the last day of their pay period.

The PAYE Real Time Information (RTI) Full Payment Submission (FPS) submission notifying their first payment of wages was received by HMRC on 1 March 2021, and the employee’s reference date is 2 March 2021 even though their first pay period ends after 2 March 2021.

The employee is contracted to work on a shift pattern of three 9-hour shifts in each week. This working pattern repeats every 7 days.

The employee agrees to be placed on furlough from 7 May 2021. The first pay period which the employer claims a grant for is the pay period 6 May 2021 to 19 May 2021. The employer calculates the usual hours for this pay period:

1. Start with 27 hours – these are the hours the employee was contracted for in their repeating working pattern at the end of the last pay period for which a PAYE Real Time Information (RTI) Full Payment Submission (FPS) was submitted to and received by HMRC on or before the employee’s reference date (2 March 2021) – which in this example, is 9 hours multiplied by 3 days.

2. Divide by 7 (the number of days in the repeating working pattern, including non-working days).

3. Multiply by 13 (the number of calendar days in the pay period (or partial pay period) the employer is claiming for) = 50.14.

4. Round up to the next whole number because the calculation is for the entire claim period = 51.

### 2.4 Example of how to work out usual hours for employees who are contracted for a fixed number of hours where the employee’s reference date is 19 March 2020

An employee is contracted to work on a shift pattern of four consecutive 12-hour days and then have four days off. This working pattern repeats every 8 days. The employee is paid calendar monthly. C Ltd looks to make a flexible furlough claim for the period 1 July 2021 to 31 July 2021 (31 calendar days). The pay period and the claim period align.

The employee’s reference date is 19 March 2020.

C Ltd calculates the usual hours for the July 2021 pay period by following the steps below:

1. Start with 48 hours (the hours the employee was contracted for in their repeating working pattern at the end of the last pay period ending on or before the employee’s reference date – which in this example, is 12 hours multiplied by 4 days).

2. Divide by 8 (the number of days in the repeating working pattern, including non-working days).

3. Multiply by 31 (the number of calendar days in the pay period (or partial pay period) the employer is claiming for) = 186.

4. The outcome of step 3 is a whole number, so does not need to be rounded up to the next whole number.

An employee is paid calendar monthly and they have a reference date of 19 March 2020. The employee’s last pay period ending on or before their reference date (19 March 2020) ended on 29 February 2020.

In the pay period ending 29 February 2020, the employee was off sick for 7 days.

When calculating the hours the employee was contracted for at the end of the last pay period ending on or before the employee’s reference date, the usual hours should be calculated as if the employee had not taken that leave.

### 2.6 Example of how to work out the usual hours for employees who are contracted for a fixed number of hours where their reference date is 30 October 2020

An employee is contracted to work 37 hours a week across five working days. The employee is paid weekly. D Ltd looks to make a flexible furlough claim for the period 1 November 2020 to 8 November 2020 (eight calendar days). There are 2 pay periods partially in this claim period:

• 26 October to 1 November 2020
• 2 November to 8 November 2020

D Ltd calculates the usual hours for the days in each pay period that are in their claim.

D Ltd is calculating on a pay period basis so they must round the nearest number of usual hours for each pay period up or down to the nearest whole number.

The employee started working for D Ltd on 3 August 2020.

The employee’s reference date is 30 October 2020.

D Ltd first calculates the usual hours for the days they are claiming for in the pay period 26 October 2020 to 1 November 2020 as follows:

1. Start with 37 hours (the hours the employee was contracted for at the end of the last pay period ending on or before the employee’s reference date).

2. Divide by 7 (the number of days in the repeating working pattern, including non-working days).

3. Multiply by 1 (the number of calendar days in the pay period (or partial pay period) D Ltd is claiming for – this is a partial pay period) = 5.29.

4. Round up or down to the nearest whole number if the outcome is not a whole number = 5.

D Ltd next calculates the usual hours for the days they are claiming for in the pay period 2 November 2020 to 8 November 2020 as follows:

1. Start with 37 hours (the hours the employee was contracted for at the end of the last pay period ending on or before the employee’s reference date).

2. Divide by 7 (the number of days in the repeating working pattern, including non-working days).

3. Multiply by 7 (the number of calendar days in the pay period (or partial pay period) D Ltd is claiming for – this is not a partial pay period) = 37.

4. Round up or down to the nearest whole number if the outcome is not a whole number = 37.

### 2.7 Example of how to work out the usual hours for employees who are contracted for a fixed number of hours where their reference date is 2 March 2021

An employee is contracted to work 29 hours a week across four working days. The employee is paid fortnightly on a Friday. The date they are paid is the last day of their pay period. The employer looks to make a flexible furlough claim for the period 1 May 2021 to 14 May 2021 (14 calendar days) which is a whole pay period. The employer calculates the usual hours for this period.

The employee started working for the employer on 15 January 2021.

The employee’s reference date is 2 March 2021.

The employer calculates the usual hours for the days they are claiming for in the pay period 1 May 2021 to 14 May 2021 as follows:

1. Start with 29 hours (the hours the employee was contracted for at the end of the last pay period ending on or before the employee’s reference date).

2. Divide by 7 (the number of days in the repeating working pattern, including non-working days).

3. Multiply by 14 (the number of calendar days in the pay period (or partial pay period) the employer is claiming for) = 58.

4. The outcome of step 3 is a whole number, so does not need to be rounded up to the next whole number.

### 2.8 Example of how to work out the average number of hours worked in the tax year 2019 to 2020 for an employee who works variable hours and whose reference date is 19 March 2020

An employee started work for E Ltd in 2005. The employee is paid every 2 weeks and was furloughed between:

• 23 March 2020 and 14 July 2020
• 1 November 2020 and 31 March 2021

The employee’s reference date is 19 March 2020.

E Ltd calculates that the employee worked 1,850 hours between 6 April 2019 and 22 March 2020 (inclusive). This includes any hours that the employee received holiday pay for.

The employee will be paid for the pay period 13 March 2021 to 26 March 2021, and E Ltd is looking to make a flexible furlough claim for the same period (13 March 2021 to 26 March 2021).

E Ltd works out the average number of hours worked in the tax year 2019 to 2020 as follows:

1. Start with 1,850 (the number of hours actually worked (or on paid annual or flexi leave) in the tax year 2019 to 2020 before the employee was first furloughed).

2. Divide by 352 (the number of calendar days the employee was employed by E Ltd in the tax year 2019 to 2020, up until (and including) the day before they were first furloughed).

3. Multiply by 14 (the number of calendar days in the pay period (or partial pay period) which E Ltd is claiming for) = 73.58.

4. Round up to the next whole number and because the calculation is for an entire claim period = 74.

E Ltd will also need to work out the usual hours based on the corresponding calendar period in a previous year, and use the higher figure for the usual hours.

### 2.9 Example of how to work out the average number of hours worked in the tax year 2019 to 2020 for an employee who works variable hours, was on a period of statutory adoption leave in the tax year 2019 to 2020 and whose reference date is 19 March 2020

An employee started work for F Ltd in 2013. The employee is paid every four weeks and was first furloughed on 31 March 2020.

The employee’s reference date is 19 March 2020.

The employee will be paid for the pay period 1 July 2021 to 28 July 2021, and F Ltd is looking to make a flexible furlough claim for the same period (1 July 2021 to 28 July 2021).

F Ltd calculates that the employee worked 616 hours between 6 April 2019 and 30 March 2020 (inclusive). This includes any hours that the employee received holiday pay for. The employee was on a period of statutory adoption leave between 1 June 2019 and 14 January 2020 (inclusive) – this is 228 days.

The number of days between 6 April 2019 and 30 March 2020 is 360 days (inclusive). F Ltd should not include the days where the employee was on statutory adoption leave, leaving 132 days.

F Ltd works out the average number of hours worked in the tax year 2019 to 2020 as follows:

1. Start with 616 (the number of hours actually worked (or on paid annual leave or “flexi” leave) in the tax year 2019 to 2020 before the employee was furloughed).

2. Divide by 132 (the number of calendar days the employee was employed by F Ltd in the tax year 2019 to 2020, up until (and including) the day before they were furloughed, not including the time that the employee was on statutory adoption leave).

3. Multiply by 28 (the number of calendar days in the pay period (or partial pay period) which F Ltd is claiming for) = 130.66.

4. Round up to the next whole number because the outcome is not a whole number and because the calculation is for an entire claim period = 131.

F Ltd will also need to work out the usual hours based on the corresponding calendar period in a previous year and use the higher figure for the usual hours.

### 2.10 Example of how to work out the usual hours worked in the same period in a previous year for an employee who works variable hours, whose reference date is 19 March 2020, where the pay period (or partial pay period) being claimed for starts and ends on the same calendar days as the identified pay period

An employee is paid calendar monthly and has a calendar monthly pay period.

The employee’s reference date is 19 March 2020.

G Ltd is preparing claims for the February 2021 and March 2021 pay periods.

The employee works variable hours and their reference date is 19 March 2020, so G Ltd needs to work out the usual hours based on the higher of either the:

• average number of hours worked in the tax year 2019 to 2020
• corresponding calendar period in a previous year

G Ltd works out the usual hours based on the corresponding calendar period in a previous year.

The lookback period for February 2021 is February 2020, so the employer would need to use the hours the employee worked in the corresponding period in 2020 in its February 2021 claim.

The lookback period for March 2021 is March 2019, so the employer would need to use the hours the employee worked in the corresponding period in 2019 in its March 2021 claim.

G Ltd will also need to work out the average number of hours worked in the tax year 2019 to 2020.

### 2.11 Example of how to work out the usual hours for an employee who works variable hours whose reference date is 19 March 2020 based on the hours worked in more than one pay period in a previous year

H Ltd processes a weekly payroll and is looking to make a claim for the period 20 July 2020 to 26 July 2020 for an employee who works variable hours. The employee has worked for H Ltd since 2017.

The employee’s reference date is 19 March 2020.

The lookback period for July 2020 is July 2019, so H Ltd works out the usual hours based on the corresponding calendar period in July 2019, which is 20 July 2019 to 26 July 2019.

That period covers 2 pay periods in 2019:

• 15 July 2019 to 21 July 2019 (2 calendar days overlap with the 2020 pay period – 20 to 21 July 2020)
• 22 July 2019 to 28 July 2019 (5 calendar days overlap with the 2020 pay period – 22 to 26 July 2020)

In 2019, the employee worked the following hours:

• in the pay period starting 15 July 2019 – 28 hours
• in the pay period starting 22 July 2019 – 35 hours

H Ltd works out the usual hours based on the corresponding calendar period in a previous year as follows:

1. Start with 28 (the number of hours worked in the first pay period identified).

2. Multiply by 2 (the number of calendar days in that pay period which correspond to at least one calendar day in the pay period (or partial pay period) H Ltd is claiming for – 20 and 21 July).

3. Divide by 7 (the total number of calendar days in the pay period identified) = 8.

Step 4 is that steps 1, 2 and 3 are repeated for each subsequent identified pay period. H Ltd will need to repeat steps 1, 2 and 3 for the next pay period:

1. Start with 35 (the number of hours worked in the next pay period identified).

2. Multiply by 5 (the number of calendar days in that pay period which correspond to at least one calendar day in the pay period (or partial pay period) H Ltd is claiming for – 22 to 26 July).

3. Divide by 7 (the total number of calendar days in the pay period identified) = 25.

There are no more pay periods in July 2019 to consider, so:

1. Add them all together, 8 + 25 = 33.
2. The outcome is a whole number, so does not need to be rounded up to the next number.

H Ltd will also need to work out the average number of hours worked in the tax year 2019 to 2020 and use the higher figure for the employee’s usual hours.

### 2.12 Example of how to work out the usual hours based on the hours worked in more than one pay period in a previous year for March 2021 or April 2021 for an employee who works variable hours whose reference date is 19 March 2020

H Ltd processes a fortnightly payroll and is looking to make a claim for the period 1 March 2021 to 14 March 2021 for an employee who works variable hours. The employee has worked for H Ltd since 2017.

The employee’s reference date is 19 March 2020.

The lookback period for March 2021 is March 2019, so H Ltd works out the usual hours based on the corresponding calendar period in March 2019, which is 1 March 2019 to 14 March 2019. That period covers 2 pay periods in 2019:

• 18 February 2019 to 3 March 2019 (3 calendar days overlap with the 2021 pay period – 1 March 2021 to 3 March 2021)
• 4 March 2019 to 17 March 2019 (11 calendar days overlap with the 2021 pay period – 4 to 14 March 2021)

In 2019, the employee worked the following hours:

• in the pay period starting 18 February 2019 – 52 hours
• in the pay period starting 4 March 2019 – 44 hours

H Ltd works out the usual hours based on the corresponding calendar period in a previous year as follows:

1. Start with 52 (the number of hours worked in the first pay period identified).

2. Multiply by 3 (the number of calendar days in that pay period which correspond to at least one calendar day in the pay period (or partial pay period) H Ltd is claiming for – 1 March to 3 March).

3. Divide by 14 (the total number of calendar days in the pay period identified) = 19.5.

Step 4 is that steps 1, 2 and 3 are repeated for each subsequent identified pay period. H Ltd will need to repeat steps 1, 2 and 3 for the next pay period:

1. Start with 44 (the number of hours worked in the next pay period identified).

2. Multiply by 11 (the number of calendar days in that pay period which correspond to at least one calendar day in the pay period (or partial pay period) H Ltd is claiming for – 4 to 14 March).

3. Divide by 14 (the total number of calendar days in the pay period identified) = 34.6.

There are no more pay periods in March 2019 to consider, so:

1. Add them all together, 19.5 + 34.6 = 54.1.

2. The outcome is not a whole number so round up to the next whole number, 55.

H Ltd will also need to work out the average number of hours worked in the tax year 2019 to 2020 and use the higher figure for the employee’s usual hours.

### 2.13 Example of how to work out the usual hours based on the average number of hours worked for an employee who works variable hours and whose reference date is 30 October 2020

An employee started work for I Ltd on 1 May 2020. The employee is paid every 2 weeks and was furloughed on 3 November 2020.

The employee’s reference date is 30 October 2020, so the date to calculate up to is the day before the employee’s first day spent on furlough on or after 1 November 2020 (this is 2 November 2020).

I Ltd calculates that the employee worked 1,020 hours between 1 May 2020 and 2 November 2020 (inclusive). This includes any hours that the employee received holiday pay for.

The employee will be paid for the pay period 15 November 2020 to 28 November 2020, and I Ltd is looking to make a flexible furlough claim for the same period (15 November 2020 to 28 November 2020).

I Ltd works out the usual hours based on the average number of hours worked from 1 May 2020 up to (and including) the day before the employee’s first day spent on furlough on or after 1 November 2020 as follows:

1. Start with 1,020 (the number of hours actually worked (or on paid annual leave or flexi-leave) from 1 May 2020

up to (and including) 2 November 2020.

1. Divide by 186 (the number of calendar days the employee was employed by I Ltd from 1 May 2020 – including non-working days, up to (and including) 2 November 2020).

2. Multiply by 14 (the number of calendar days in the pay period (or partial pay period) which I Ltd is claiming for) = 76.77.

3. Round up to the next whole number because the outcome is not a whole number and because the calculation is for an entire claim period = 77.

Read guidance on how to work out your employees usual hours and furloughed hours.

### 2.14 Example of how to work out the usual hours based on the average number of hours worked from 6 April 2020 and up to (and including) the day before the employee’s first day spent on furlough on or after 1 May 2021

An employee started work for their employer on 1 February 2021. The employee is paid every calendar month and was furloughed on 4 May 2021.

The employee’s reference date is 2 March 2021, so the date to calculate up to is the day before the employee’s first day spent on furlough on or after 1 May 2021 (this is 3 May 2021).

The employer calculates that the employee worked 520 hours between 1 February 2021 and 3 May 2021 (inclusive). This includes any hours that the employee received holiday pay for.

The employee will be paid for the pay period 1 May 2021 to 31 May 2021, and the employer is looking to make a flexible furlough claim for the same period (1 May 2021 to 31 May 2021).

The employer works out the usual hours based on the average number of hours worked from 1 February 2021 up to (and including) the day before the employee’s first day spent on furlough on or after 1 May 2021 as follows:

1. Start with 520 (the number of hours actually worked (or on paid annual leave or flexi-leave) from 1 February 2021, up to (and including) 3 May 2021).

2. Divide by 92 (the number of calendar days the employee was employed by the employer from 1 February 2021 – including non-working days – up until (and including) 3 May 2021).

3. Multiply by 31 (the number of calendar days in the pay period (or partial pay period) which the employer is claiming for) = 175.22.

4. Round up to the next whole number because the outcome is not a whole number and because the calculation is for an entire claim period = 176.

### 2.15 Example for calculating the number of furloughed hours

An employee is flexibly furloughed from 1 August 2021. J Ltd, their employer, claims weekly, in line with when it processes its payroll.

J Ltd is looking to claim for the employee for the period 9 August 2021 to 15 August 2021 (1 week). The employer works out the employee’s usual hours for this period to be 37 hours. The employee does not take leave in this period.

The employee and J Ltd agree that the employee will work 10 hours in the period 9 August 2021 to 15 August 2021. The employee works 10 hours in that period.

J Ltd calculates the employee’s number of furloughed hours as follows:

2. Subtract 10 (the number of hours the employee actually worked in the claim period).

The employee is furloughed for 27 of their 37 usual hours.

Read guidance on calculating the number of furloughed hours.

## 3. Work out 80% of your employee’s normal wage

### 3.1 Example of working out the maximum wage amount for part of a pay period

K Ltd pays all of their employees weekly each Friday and puts all of their employees on furlough from Wednesday 2 June 2021 until Wednesday 30 June 2021.

The first pay period in the claim period ends on Friday 4 June 2021. The employees were only furloughed for 3 days in this pay period, so K Ltd will need to calculate the maximum wage amount using the daily calculation. This is £83.34 multiplied by 3 days, which is £250.02.

For the next pay period, 5 June 2021 to 11 June 2021, the maximum amount is £576.92 because the pay period is a whole week, and the employee is furloughed on each day.

The following pay periods, 12 June 2021 to 18 June 2021 and 19 June 2021 to 25 June 2021, are also whole weeks so the maximum amount for each of those periods is £576.92.

The remaining part of the claim period, 26 June 2021 to 30 June 2021, is not a whole week so K Ltd will need to calculate the maximum wage amount using the daily calculation. This is £83.34 multiplied by 5 days, which is £416.70.

K Ltd makes a claim for 2 June 2021 to 30 June 2021. The maximum wage amount is the total of the amounts for each pay period: £250.02 + £576.92 + £576.92 + £576.92 + £416.70 = £2,397.48

Read guidance on how to work out the maximum wage amount.

### 3.2 Example for working out 80% of wages for a fixed rate full or part time employee on a salary where the employee’s reference date is 19 March 2020

An employee started work for L Ltd in 1997 and is paid a regular monthly salary on the last day of each month. The employee agreed to be placed on furlough from 23 March 2020. The employee was paid £2,400 for the last full monthly pay period before 19 March 2020. There are 9 days between 23 March and 31 March (inclusive).

The employee’s reference date is 19 March 2020.

L Ltd works out 80% of the employee’s wage:

1. Start with £2,400 (wages payable to the employee in the last pay period ending on or before the employee’s reference date).

2. Divide by 31 (the total number of days in the pay period the employer is calculating for).

3. Multiply by 9 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for).

4. Multiply by 80% – which is £557.42.

### 3.3 Example for working out 80% of wages for a fixed rate full or part time employee on a salary where the reference date is 30 October 2020

An employee started work for M Ltd on 1 April 2020 and is paid a regular monthly salary on the last day of each month. The employee agreed to be placed on furlough from 2 November 2020. The employee was paid £2,400 for the last full monthly pay period before 30 October 2020. There are 29 days between 2 November 2020 and 30 November 2020 (inclusive).

The employee’s reference date is 30 October 2020.

M Ltd works out 80% of the employee’s wage:

1. Start with £2,400 (the wages payable to the employee in the last pay period ending on or before the employee’s reference date).

2. Divide by 30 (the total number of days in the pay period the employer is calculating for).

3. Multiply by 29 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for).

4. Multiply by 80% – which is £1,856.

### 3.4 Example for working out 80% of wages for a fixed rate full or part time employee on a salary where the reference date is 2 March 2021

An employee started work for an employer on 1 December 2020 and is paid a regular weekly salary. The employee agreed to be placed on furlough from 17 May 2021. The employee was paid £480 for the last weekly pay period ending on or before 2 March 2021.

The employee’s reference date is 2 March 2021.

The employer works out 80% of the employee’s wage:

1. Start with £480 (the wages payable to the employee in the last pay period ending on or before the employee’s reference date).

2. Divide by 7 (the total number of days in the pay period the employer is calculating for).

3. Multiply by 7 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for).

4. Multiply by 80% – which is £384.00.

### 3.5 Example of working out 80% of wages for fixed rate full or part time employee who returns to working their usual hours during the claim period where the reference date is 19 March 2020

An employee has a calendar month pay period and usually works 40 hours per week. The employee was paid £2,000 in the last full monthly pay period before 19 March 2020. The employee is flexibly furloughed from 1 May 2021, working 10 hours per week. The flexible furlough agreement ends on 12 May 2021 and the employee returns to work their full usual hours from 13 May 2021.

The employee’s reference date is 19 March 2020.

The employer works out 80% of the employee’s wage:

1. Start with £2,000 (wages payable to the employee in the last pay period ending on or before the employee’s reference date).

2. Divide by 31 (the total number of days in the pay period the employer is calculating for).

3. Multiply by 12 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for).

4. Multiply by 80% – which is £619.35.

N Ltd should disregard any usual hours, working hours and furloughed hours after 12 May 2021 because the employee is no longer furloughed after that date, even if N Ltd has to claim for a longer period such as 1 May 2021to 31 May 2021 (for example to align claim periods when claiming for multiple employees).

### 3.6 Example for working out 80% of your fixed-rate employee’s wages if they have not been paid for a full pay period

Employee started work for O Ltd on 21 February 2020 and is paid on the last day of each month. The employee is paid a fixed salary. The employee had not had a full pay period up to 19 March 2020, but was paid £700 as a pro-rata of their salary on 29 February 2020. There are 9 days between 21 February 2020 and 29 February 2020 (inclusive). The employee agrees to be furloughed from 25 March 2020. There are 7 days between 25 March 2020 and 31 March 2020 (inclusive).

The employee’s reference date is 19 March 2020.

1. Start with £700 (the amount they were paid in the last pay period ending on or before the employee’s reference date).

2. Divide by 9 (the number of days in that period – including non-working days).

3. Multiply by 7 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for).

4. Multiply by 80% – which is £435.56.

### 3.7 Example of calculating wages for a fixed rate employee whose first pay period ends after their reference date where the employee’s reference date is 30 October 2020

An employee started work for EF Ltd on 12 October 2020 and is entitled to be paid a regular monthly salary of £2,340 on the last day of each month.

The employee agreed to be placed on furlough from 2 November 2020 until 30 November 2020 (29 days).

The employee’s pay for the period 12 October 2020 to 31 October 2020 is £1,620 because the employee started employment part way through the period.

The employee’s reference date is 30 October 2020.

EF Ltd works out 80% of the employee’s wage:

1. Start with £1,620 (the amount of the employee’s wages that was included on EF Ltd’s last PAYE Real Time Information (RTI) Full Payment Submission (FPS) submitted to and received by HMRC on or before their reference date).

2. Divide by 20 (the number of days in the pay period that PAYE Real Time Information (RTI) Full Payment Submission (FPS) relates to).

3. Multiply by 29 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for).

4. Multiply by 80% – which is £1,879.20.

### 3.8 Example of calculating wages for a fixed rate employee whose first pay period ends after their reference date where the employee’s reference date is 2 March 2021

An employee started work for their employer on 26 February 2021 and is entitled to be paid a regular weekly salary of £541 every Wednesday.

The employee agreed to be placed on furlough from 2 May 2021 until 31 May 2021 (30 days).

The employee’s pay for the period 26 February 2021 to 3 March 2021 is £463.71 because the employee started employment part way through the pay period. The employer submitted and HMRC received the PAYE Real Time Information (RTI) Full Payment Submission (FPS) on 1 March 2021 – the amount of wages that was included on that RTI FPS was £463.71.

The employee’s reference date is 2 March 2021.

The employer calculates 80% of the employee’s usual wages for the pay period 3 May 2021 to 9 May 2021:

1. Start with £463.71 (the amount of the employee’s wages that was included on the employer’s last PAYE Real Time Information (RTI) Full Payment Submission (FPS) submitted to and received by HMRC on or before their reference date).

2. Divide by 6 (the number of days in the partial pay period that PAYE Real Time Information (RTI) Full Payment Submission (FPS) relates to).

3. Multiply by 7 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for).

4. Multiply by 80% – which is £432.80.

### 3.9 Example of calculating 80% of the wages from the same period in a previous year for a month before March 2021

P Ltd pays an employee on a weekly basis. The employee’s pay period starts on 23 March 2020 and ends on 29 March 2020. The employee was furloughed for the whole week.

The employee’s reference date is 19 March 2020.

The lookback period for March 2020 is March 2019. The employee earned £350 in the corresponding calendar period in March 2019.

1. Start with £350 (the amount they earned in the corresponding part of the lookback period).

2. Divide by 7 (the total number of days in that pay period, including non-working days).

3. Multiply by 7 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for).

4. Multiply by 80% – this is £280.

### 3.10 Example of calculating 80% of the wages from the same period in a previous year for February 2021

P Ltd pays an employee a variable amount at the end of each calendar month. The employee’s pay period starts on 1 February 2021 and ends on 28 February 2021. The employee was furloughed for the whole month.

The employee’s reference date is 19 March 2020.

The lookback period for February 2021 is February 2020. The employee earned £1,740 between 1 February 2020 and 29 February 2020.

As 2020 was a leap year, P Ltd may use the full amount earned in February 2020 (£1,740) or 28ths or 29ths of that amount (£1,680). HMRC will not challenge either approach.

Whichever approach is used, P Ltd must multiply the result by 80%. 80% of £1,740 is £1,392 and 80% of £1,680 is £1,344.

### 3.11 Example of calculating 80% of the wages from the same period in a previous year from March 2021 onwards

P Ltd pays an employee on a weekly basis. The employee’s pay period starts on 5 April 2021 and ends on 11 April 2021. The employee was furloughed for the whole week.

The employee’s reference date is 19 March 2020.

The lookback period for April 2021 is April 2019. The employee earned £600 in the corresponding calendar period in April 2019.

1. Start with £600 (the amount they earned in the corresponding part of the lookback period)

2. Divide by 7 (the total number of days in that pay period, including non-working days)

3. Multiply by 7 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for)

4. Multiply by 80% – this is £480

### 3.12 Example of working out 80% of average monthly wages for the 2019 to 2020 tax year

Employee started work for Q Ltd in 2018 and was placed on furlough on 23 March 2020, receiving wages of £15,000 between 6 April 2019 and 22 March 2020 inclusive. There are 352 days between 6 April 2019 and 22 March 2020 (inclusive).

Q Ltd is claiming for 5 June to 13 June 2021. There are 9 days between 5 June and 13 June 2021 (inclusive).

The employee’s reference date is 19 March 2020.

1. Start with £15,000 (the amount of wages that was payable to the employee in the 2019 to 2020 tax year up to (and including) the day before they were first furloughed)

2. Divide it by 352 (the number of days from the start of the 2019 to 2020 tax year – including non-working days, (up to and including the day before they were first furloughed, or 5 April 2020 – whichever is earlier))

3. Multiply by 9 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for)

4. Multiply by 80% – this is £306.82

### 3.13 Example of working out 80% of average wages for the 2019 to 2020 tax year if the employment started after 6 April 2019

Employee started work for R Ltd on 1 May 2019 and was placed on furlough on 23 March 2020, receiving wages of £15,000 between 1 May 2019 and 22 March 2020 inclusive. There are 327 days between 1 May 2019 and 22 March 2020 (inclusive). R Ltd is claiming for 23 March to 31 March 2020. There are 9 days between 23 March and 31 March 2020(inclusive).

The employee’s reference date is 19 March 2020.

1. Start with £15,000 (the amount of wages that were payable to the employee in the 2019 to 2020 tax year up to (and including) the day before they were first furloughed)

2. Divide it by 327 (the number of days from the start of employment – including non-working days , (up to and including the day before they were first furloughed, or 5 April 2020 – whichever is earlier))

3. Multiply by 9 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for)

4. Multiply by 80% – this is £330.28

Read guidance on how to work out 80% of average wages for the last tax year.

An employee started work for their employer in 2015 and was placed on furlough on 1 April 2021. The employee was not furloughed during the 2019 to 2020 tax year, and they received wages of £24,000 between 6 April 2019 and 5 April 2020 (inclusive).

The employee was on a period of statutory sick pay related leave between 1 September 2019 and 6 October 2019 (inclusive) – this is 36 days.

The employee’s reference date is 19 March 2020.

The employer is making a claim for the pay period 1 May 2021 to 31 May 2021.

There are 366 days between 6 April 2019 and 5 April 2020 (inclusive). For claim periods starting on or after 1 May 2021, the employer should not include the days where the employee was on statutory sick pay related leave, leaving 330 days. The employer should also not include wages related to a period of statutory sick pay related leave – this was £1,500, leaving £22,500. For claim periods which end on or before 30 April 2021 the employer cannot remove these days or these amounts of wages from the calculation.

The employer calculates 80% of the employee’s usual wages for the pay period 1 May 2021 to 31 May 2021 as follows:

1. Start with £22,500 (the amount of wages that was payable to the employee in the 2019 to 2020 tax year up to (and including) the day before they were first furloughed) – this does not include wages related to the period of statutory sick pay related leave

2. Divide it by 330 (the number of days from the start of the 2019 to 2020 tax year – including non-working days (up to and including the day before they were first furloughed, or 5 April 2020 – whichever is earlier)) – this does not include the days on statutory sick pay related leave

3. Multiply by 31 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for)

4. Multiply by 80% – this is £1,690.91

### 3.15 Example of working out 80% of your employee’s average wages between 6 April 2020 and the day before the employee’s first day spent on furlough on or after 1 November 2020

Employee started work for S Ltd on 3 August 2020 and was placed on furlough on 4 November 2020, receiving wages of £4,000 between 3 August 2020 and 3 November 2020 (inclusive).

The employee will be paid for the pay period 15 November 2020 to 28 November 2020, and S Ltd is looking to make a flexible furlough claim for the same period (15 November 2020 to 28 November 2020).

There are 93 days between 3 August 2020 and 3 November 2020 (inclusive).

The employee’s reference date is 30 October 2020, so the date to calculate up to is the day before the employee’s first day spent on furlough on or after 1 November 2020 (this is 3 November 2020).

S Ltd works out 80% of the employee’s average wages between 3 August 2020 and the day before the employee’s first day spent on furlough on or after 1 November 2020:

1. Start with £4,000 (the amount of wages that were payable to the employee from 3 August 2020 up to (and including) the date to calculate up to).

2. Divide it by 93 (the number of days from 3 August 2020 – including non-working days – up until (and including) the date to calculate up to).

3. Multiply by 14 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for).

4. Multiply by 80% – this is £481.72.

### 3.16 Example of working out 80% of the average wages payable between 6 April 2020 and the day before they were first furloughed on or after 1 May 2021

An employee started work for their employer on 15 November 2020 and was placed on furlough on 1 May 2021, receiving wages of £10,000 between 15 November 2020 and 30 April 2021 inclusive.

The employee will be paid for the pay period 3 May 2021 to 9 May 2021, and the employer is looking to make a flexible furlough claim for the same period (3 May 2021 to 9 May 2021).

There are 167 days between 15 November 2020 and 30 April 2021 (inclusive).

The employee’s reference date is 2 March 2021, so the date to calculate up to is the day before the employee’s first day spent on furlough on or after 1 May 2021 (this is 30 April 2021).

The employer works out 80% of the employee’s average wages between 15 November 2020 and the day before the employee’s first day spent on furlough on or after 1 May 2021:

1. Start with £10,000 (the amount of wages that were payable to the employee from 15 November 2020 up to (and including) the date to calculate up to)

2. Divide it by 167 (the number of days the employee was employed by you from 15 November 2020 – including non-working days – up until (and including) the date to calculate up to)

3. Multiply by 7 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for)

4. Multiply by 80% – this is £335.33

An employee started work for an employer on 3 April 2020 and was placed on furlough on 1 May 2021, receiving wages of £23,000 between 6 April 2020 and 30 April 2021 inclusive.

The employee will be paid for the pay period 1 May 2021 to 31 May 2021, and the employer is looking to make a flexible furlough claim for the same period (1 May 2021 to 31 May 2021).

There are 390 days between 6 April 2020 and 30 April 2021 (inclusive).

The employee’s reference date is 30 October 2020, so the date to calculate up to is the day before the employee’s first day spent on furlough on or after 1 November 2020 (this is 30 April 2021).

The employee was on a period of statutory sick pay related leave between 1 December 2020 and 31 December 2020 (inclusive) – this is 31 days.

For claim periods starting on or after 1 May 2021, the employer should not include the days where the employee was on statutory sick pay related leave, leaving 359 days. The employer should also not include wages related to a period of statutory sick pay related leave – this was £1,250, leaving £21,750. For claim periods which end on or before 30 April 2021 the employer cannot remove these days or these amounts of wages from the calculation.

The employer works out 80% of the employee’s average wages between 6 April 2020 (or, if later, the date the employment started) and the day before the employee’s first day spent on furlough on or after 1 November 2020:

1. Start with £21,750 (the amount of wages that were payable to the employee from 6 April 2020 up to (and including) the date to calculate up to) – this does not include wages related to the period of statutory sick pay related leave

2. Divide it by 359 (the number of days the employee was employed by you from 6 April 2020 – including non-working days – up until (and including) the date to calculate up to) – this does not include the days on statutory sick pay related leave

3. Multiply by 31 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for)

4. Multiply by 80% – this is £1,502.51

### 3.18 Example of calculating average wages for a variable-rate employee whose reference date is 30 October 2020 and whose first wages are payable after they begin furlough

An employee started work for GH Ltd on 21 September 2020 and is paid a variable amount each month. GH Ltd’s pay period runs 16 September 2020 to 15 October 2020, payable on 2 November 2020.

The employee agreed to be placed on furlough from 1 November 2020 until 30 November 2020 (30 days).

The employee’s pay for the period 21 September to 15 October 2020 is £1,900.

The employee’s reference date is 30 October 2020, so the date to calculate up to is the day before the employee’s first day spent on furlough on or after 1 November 2020 (this is 31 October 2020).

GH Ltd works out 80% of the employee’s average wages:

1. Start with £1,900 (the amount of the employee’s wages that was included on GH Ltd’s last PAYE Real Time Information (RTI) Full Payment Submission (FPS) received by HMRC on or before the employee’s reference date).

2. Divide by 41 (the number of days the employee was employed by the employer from 6 April 2020 – including non-working days – up until to(and including) the date to calculate up to).

3. Multiply by 30 (the number of furlough days in the pay period (or partial pay period) the employer is claiming for).

4. Multiply by 80% – which is £1,112.20.

### 3.19 Example of how to calculate minimum furlough pay for an employee who is flexibly furloughed

T Ltd’s employee has been furloughed continuously since 1 May 2020. The employee is paid calendar monthly. From 1 July 2020, the employee returns to work part-time for T Ltd and is furloughed for the rest of their usual hours. T Ltd makes a flexible furlough claim for 1 July 2020 to 31 July 2020.

T Ltd has calculated that the employee’s usual hours from 1 July 2020 to 31 July 2020 are 164. The employee actually works 80 hours, and is therefore furloughed for the remaining 84 usual hours. T Ltd has calculated that 80% of the employee’s usual wages is £1,800. The maximum wage amount is £2,500 as the claim is for a full month.

T Ltd calculates the minimum furlough pay:

1. Start with £1,800 – this is the lesser of 80% of the employee’s usual wages (£1,800) and the maximum wage amount (£2,500).

2. Multiply by 84 – this is the employee’s furloughed hours.

3. Divide by 164 – this is the employee’s usual hours.

T Ltd must pay the employee £921.95 for the time they are on furlough. T Ltd can choose to pay the employee more than this for the time they are furloughed, but does not have to. T Ltd will next need to calculate how much of the minimum furlough pay it can claim for.

### 3.20 Example of how to work out how much of the minimum furlough pay you can claim for

U Ltd’s employee has been furloughed continuously since 15 April 2020. The employee is paid calendar monthly. U Ltd makes a claim for 1 November to 30 November 2020. U Ltd has calculated that the minimum furlough pay for this period is £1,500, which is 80% of the employee’s usual wages.

U Ltd can claim a grant of £1,500 towards its employee’s wages, which is the full 80% of usual wages. U Ltd must pay the employee the minimum furlough pay amount of £1,500, and can choose to pay more than this but does not have to.

U Ltd cannot claim a grant towards the cost of any employer National Insurance contributions or employer pension contributions.

### 3.21 Example of how to work out how much of the minimum furlough pay you can claim for the month of July 2021

R Ltd’s employee has been furloughed continuously since 1 May 2021. The employee is paid calendar monthly. R Ltd makes a claim for 1 July 2021 to 31 July 2021. R Ltd has calculated that the minimum furlough pay for this period is £1,500, which is 80% of the employee’s usual wages.

R Ltd calculates how much it can claim for its employee’s furlough pay:

2. Divide by 80.

3. Multiply by 70 – because the claim period is in July 2021.

R Ltd can claim a grant of £1,312.50 towards its employee’s wages. However, R Ltd must pay the employee the minimum furlough pay amount of £1,500, and can choose to pay more than this but does not have to.

R Ltd cannot claim a grant towards the cost of any employer National Insurance contributions or employer pension contributions.

#### Another example of how to work out how much of the minimum furlough pay you can claim for the month of July 2021

An employer’s employee has been furloughed continuously since 15 January 2021. The employee is paid weekly. The employer makes a claim for 19 July 2021 to 25 July 2021. The employer has calculated that the minimum furlough pay for this period is £400, which is 80% of the employee’s usual wages.

The employer calculates how much it can claim for its employee’s furlough pay:

2. Divide by 80.

3. Multiply by 70 – because the claim period is in July 2021.

The employer can claim a grant of £350 towards its employee’s wages. However, the employer must pay the employee the minimum furlough pay amount of £400, and can choose to pay more than this but does not have to. The employer cannot claim a grant towards the cost of any employer National Insurance contributions or employer pension contributions.

### 3.22 Example of how to work out how much of the minimum furlough pay you can claim for the month of August 2021

R Ltd’s employee has been furloughed continuously since 1 May 2021. The employee is paid calendar monthly. R Ltd makes a claim for 1 August 2021 to 31 August 2021. R Ltd has calculated that the minimum furlough pay for this period is £1,450, which is 80% of the employee’s usual wages.

R Ltd calculates how much it can claim for its employee’s furlough pay:

2. Divide by 80.

3. Multiply by 60 – because the claim period is in August 2021.

R Ltd can claim a grant of £1,087.50 towards its employee’s wages. However, R Ltd must pay the employee the minimum furlough pay amount of £1,450, and can choose to pay more than this but does not have to.

R Ltd cannot claim a grant towards the cost of any employer National Insurance contributions or employer pension contributions.

### 3.23 Example of how to work out 80% of wages for an employee with annual pay whose reference date is 19 March 2020

The director of V Ltd is paid a fixed amount of £8,000 each year on 31 December, for the period 1 January to 31 December (the calendar year).

The director was first furloughed on 1 April 2020. While the director was furloughed, V Ltd paid them their wages monthly rather than on an annual basis. As a result, the director received several payments of earnings that were notified on an RTI submission between 20 March 2020 and 30 October 2020.

V Ltd furloughs the director again for the period 1 November to 30 November 2020 and makes a Coronavirus Job Retention Scheme claim for the director, for this period. Their reference date is 19 March 2020.

V Ltd calculates 80% of the employee’s wages:

1. Start with the wages payable to your employee in the last pay period ending on or before the employee’s reference date – if you’re claiming for a full pay period, skip to step 4. The employee’s reference date is 19 March 2020, and the last pay period ending on or before 19 March 2020 was the year to 31 December 2019 – the wages payable in this period were £8,000.

2. Divide by 366 (the total number of days in the pay period 1 January 2020 to 31 December 2020).

3. Multiply by 30 (the number of furlough days in November).

4. Multiply by 80%.

£8,000 ÷ 366 × 30 × 80% = £524.59

### 3.24 Example of how to work out 80% of wages for an employee with annual pay whose reference date is 30 October 2020

The director of W Ltd is paid a fixed amount of £7,500 each year on 30 March, for the period 6 April to 5 April (the tax year).

The director could not be claimed for under CJRS prior to 1 November 2020, because they did not receive a payment of earnings in the tax year 2019-2020 which was reported through RTI by 19 March 2020. They were paid £7,500 on 30 March 2020.

W Ltd furloughs the director for the period 1 November to 30 November 2020 and makes a Coronavirus Job Retention Scheme claim for the director for this period. Their reference date is 30 October 2020.

W Ltd calculates 80% of the employee’s wages:

1. Start with the wages payable to your employee in the last pay period ending on or before the employee’s reference date – if you’re claiming for a full pay period, skip for step 4. The employee’s reference date is 30 October 2020, and the last pay period ending on or before 30 October 2020 was the year to 5 April 2020 – the wages payable in this period were £7,500.

2. Divide by 365 (the number of days in the period 6 April 2020 to 5 April 2021).

3. Multiply by 30 (the number of furlough days in November).

4. Multiply by 80%.

£7,500 ÷ 365 × 30 × 80% = £493.15

The director is not due to be paid until 30 March 2021, but employers can only claim CJRS in advance if the payroll run is imminent. If W Ltd claims CJRS for November 2020 in respect of this director, they will need to pay them (and operate PAYE) earlier than usual.

### 3.25 Example of how to work out wages for different types of pension schemes

An employee works for X Ltd and earns a fixed amount of £2,000 per month. The employee contributes 5% of this = £100 to an employer pension scheme, through a Net Pay arrangement.

The employer also makes a 3% contribution = £60. The full amount of the employee’s earnings, including the amount they contribute to their pension, should be included in the CJRS calculation. The employer contribution should not be included. The amount of wages X Ltd should include in the CJRS calculation is £2,000.

A different employee works for Y Ltd. The employee entered into a salary sacrifice arrangement in 2018. Their contract was amended and their pay was reduced from £2,000 to £1,800 in exchange for an employer pension contribution.

The employee’s reference date is 19 March 2020.

The employee’s reference date is 19 March 2020. In the last pay period ending on or before 19 March 2020, they earned £1,800 per month and the employer made a £200 pension contribution on their behalf. The amount of wages Y Ltd should include in the CJRS calculation is £1,800.