Reimbursing Government-Paid Paternity Leave Based On Average Gross Monthly Salary

Mr Louis Ng Kok Kwang asked the Prime Minister and Minister for Finance (a) whether the Ministry will consider reimbursing the Government-Paid Paternity Leave (GPPL) based on the average of a person's gross monthly salary over the past few months before the commencement of the leave; and (b) if not, whether the Ministry will consider including certain incentive payments and allowances, which are currently excluded, into the reimbursement calculation of GPPL.

The Government-paid parental leave is 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. Hence, it does not include variable components that are accrued due to work, such as overtime pay, incentive payments meant to recognise increased productivity at work or 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.