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Can I deduct my employee's salary because of the reimbursement cap under Government-Paid Leave Schemes (GPLS)?


Updated by MSF

Employers must continue to pay employees their regular salary during Government-paid leave as though they were actively working. The rules differ depending on whether the leave is Government-paid or employer-paid.

For Government-paid leave components

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 any reduction, regardless of the reimbursement cap.

What employers should do

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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