Can I deduct my employee's salary because of the reimbursement cap under Government-Paid Leave Schemes (GPLS)?
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.
Related questions
Can I deduct my employee’s salary since there is a reimbursement cap for Government-Paid Leave Schemes (GPLS)?
2
Can Government-Paid Leave (GPL) be paid directly to the employee if the employer is not granting the entitlement?
Is there a cap on the Government's reimbursement for each Government-Paid Leave scheme?
Can Government-Paid Leave (GPL) be paid directly to the employee as the employer is not granting him/her the entitlement?
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