Employee benefits are company expenses. However, there are some government mandated schemes that are paid for by the government. Yet, what employers may not realise is that government-paid schemes are not a free pass for the company, employers may also have to contribute a portion of the expenses incurred in these government-mandated schemes.
#1 Government-Paid Maternity Leave (GPML)
Working mothers are entitled to up to 16 weeks of Government-Paid Maternity Leave (GPML). Eligibility requirements include employees having worked with your company for at least 3 months.
For employees having their first and second children, employer co-fund the first 8 weeks of maternity leave while the government covers the remaining 8 weeks. For a female employee’s third and subsequent child, the government will pay for the full 16-week duration of the maternity leave.
The employer essentially contributes half of the GPML (at the full gross wage) for employees having their first and second children. Only when the employee is having their third or subsequent child does the government fully reimburse the entire 16 weeks of GPML.
For the government portion of GPML, the reimbursement is capped at $10,000 per 4 weeks or a total of $20,000 per child order.
Read Also: Maternity Leave: Understanding The Rights Of A Pregnant Employee In Singapore
#2 Government Paid Adoption Leave
Adoption leave entitles working mothers to 12 weeks of paid adoption leave to bond with and care for their adopted infants.
Similar to GPML, the birth order matters. For first and second adopted children, employers will co-pay the first month while the government covers the second and third month. For employees who adopt more than 2 children, the government will pay for the entire 3-months duration of their adoption leave from their third and subsequent adoptive child.
The government reimbursement is capped at $10,000 per every 4-week leave taken, including CPF and a total cap of $20,000 for the first and second children, and $30,000 for the third and subsequent children, including CPF.
#3 Government-Paid Childcare Leave (GPCL)
Employees who are parents with Singaporean children below the age of 7 are entitled to 6 days of Government-Paid Childcare Leave (GPCL) per parent per year. Any unused leave from one year cannot be carried forward to the next annual year.
The total number of GPCL that a parent may receive is capped at 42 days (6 days a year x 7 years).
As with majority of employment entitlements, eligibility requirements include being employed (for employees) or being engaged in your work (for those who are self-employed) for at least 3 continuous months.
Employers have to pay for the first 3 days of the GPCL, while the government will only provide compensation for the remaining 3 days.
GCPL payouts are capped at $500 per day, including CPF, or a total of $1,500 in a calendar year. The total number of days of GPCL taken also matters as the government reimbursement would only apply for the 4th to 6th day of GCPL. If the employee only takes 3 days of GCPL in the year, no government reimbursement would be given.
Read Also: 10 Things Employers Need To Know About The Government Paid Childcare Leave (GPCL)
#4 In-Camp Trainings (ICTs)
While the above government-paid schemes are covered by the Employment Act, In-Camp Training (ICT) is a government scheme covered by the Enlistment Act. When employees are called up for ICT, employers are required to grant them a leave of absence for the duration of service.
During the employee’s period of NS duties, they are only eligible for their Service Pay according to their rank and vocation. According to the Enlistment Act, employers must ensure that their NSmen employees are not made worse off financially because of their obligations to fulfil NS duties. If there is any shortfall, employers are obligated to ensure that their employees receive their usually gross pay in two ways – through the DIRECT scheme which reimburses the employer, or by deducting their NSman salary from their regular pay (the NSman makes their own claim).
If it’s the latter, the employer is paying the difference between the employee’s gross salary and their NSMan salary. The employer effectively contributes to the employee’s salary despite the employee’s being in service to the nation instead of working at their employment duties. Additionally, employers will have to bear the employer’s share of CPF contributions on the full amount, inclusive of the Make-Up Pay (MUP). This means employers cannot get reimbursement for their share of CPF contributions for NSmen who go on ICT.
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