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Can I deduct my employee’s salary since there is a reimbursement cap for Government-Paid Leave Schemes (GPLS)?
Employers must continue to pay employees their regular salary during Government-paid leave as though they were actively working.
Employers are not obligated to pay employees above the reimbursement cap of $2,500 per week for Government-paid portions of leave. However, employers are encouraged to voluntarily provide payments above this threshold.
For employer-paid leave components, employers remain obligated to pay the employee's full salary without reduction, regardless of the reimbursement cap.
Employers should establish clear administrative procedures to manage these payment arrangements and ensure compliance with both Government-paid and employer-paid leave requirements.
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