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“The gross rate of pay is the salary that employees typically receive when they are away from work on public holidays, or on other forms of paid leave such as annual leave,” Minister Indranee Rajah said.
Singapore’s Second Minister for Finance and Second Minister for National Development, Indranee Rajah addressed a parliamentary query on whether the Ministry would consider reimbursing the Government-Paid Paternity Leave (GPPL) based on the average person’s gross monthly salary over the past few months before the commencement of the leave.
In response, Minister Indranee clarified that the GPPL is meant to meant to support working parents who need to take time away from work to care for their children, by ensuring that they receive income during the period of parental leave.
“An eligible working father who is entitled to Government-Paid Paternity Leave is paid at his gross rate of pay for every day of leave that is taken, capped at $2,500 per week.
“The gross rate of pay is the salary that employees typically receive when they are away from work on public holidays, or on other forms of paid leave such as annual leave.”
She added that as a result, the salary will not include variable components that are accrued due to work such as:
- Overtime pay
- Incentive payments meant to recognise increased productivity at work
- Travelling
- Food and housing allowances that are meant to cover specific expenses associated with work done
“For this reason, there is no need to compute the working parent’s gross monthly salary based on his compensation over the preceding months before the commencement of parental leave,” she responded.
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