Wages Paid During Paternity or Shared Parental Leave Period

According to the legislation, employers do not need not pay employees (who are on paternity or shared parental leave wages) beyond the number of days for which they are legally responsible. If employers choose to do so, they should be aware that the Government does not reimburse employers wages exceeding the specified reimbursement capping amount.

Several variables are used to determine how excess wages are handled for paternity and shared parental leaves.

These variables when set to ‘Y’ will lead to computation of the excess wages during the Paternity/Shared parental leave periods, which can be recovered from the employees.

The variable PAT VR RECOVERY must be set to ‘Y’ if the employer does not wish to pay wages for the paternity leave period beyond the Government-specified reimbursement capping amount to employees. The variable can be overridden at multiple levels.
The variable SPAT VR RECOVERY must be set to ‘Y’ if the employer does not wish to pay wages for the shared parental leave period beyond the Government-specified reimbursement capping amount to employees. The variable can be overridden at multiple levels.
The variable PAT VR CAP AMT contains the Government-specified reimbursement capping amount for one week of paternity leave.
The variable SPAT VR CAP AMT contains the Government-specified reimbursement capping amount for one week of shared parental leave.

When variable PAT VR RECOVERY or variable SPAT VR RECOVERY is set to Y, it kicks off excess wage calculation during the corresponding paternity or shared parental leave periods, which can be recovered from the employees.