The government has introduced the Coronavirus Job Retention Scheme to help businesses survive the economic impact of the pandemic. If your employer cannot afford to keep you on during the current lockdown, they can put you on ‘furlough’, and claim 80% of your salary back, up to a maximum of £2,500 a month. They can also claim employer’s National Insurance contributions on the payment, along with their minimum legal pension contribution.

Inevitably, the scheme is complex, and some aspects of it may still not be clear, but we have put together the answers to some of the main questions you are likely to have. The following information reflects our current understanding of how the scheme operates and we will update it whenever new details become available. In the meantime, you can also read the government’s guidance on the Coronavirus Job Retention Scheme.

Will my pension contributions continue?
Will I be taxed on the money I receive?
Does my employer have to pay me the extra 20% to make up my full salary?
Can I take another job while I am on furlough?
Am I still entitled to holiday pay?
Will my employer pay me while I’m on furlough, or will I have to claim from the government?
Will I receive it on my usual pay day?
My employer’s already put me on unpaid leave due to coronavirus. Am I too late to go on furlough?
What if I am self-isolating?
Will my commission and bonus be taken into consideration when they work out my 80%?

What is ‘furlough’?

Furlough is when your employer temporarily has no work for you or can't afford to pay you but retains you as an employee.

For more Q&As about how Covid-19 could affect your pension please visit our Covid-19 Q&As page.

Or read the latest articles from our experts on how Covid-19 affects global markets and investing.