Thursday, 1 April 2021

She Got A Paycut taking childcare leave

It's first April, but this is no April fool joke. My friend recently shared with me the Paycut she was subjected to when she took childcare leave.

For parents of Singapore citizen, you get 6 days ( per parent) if your child is less than 7 years old and you have worked with your employer for at least 3 continuous months. If your youngest child is between 7 to 12  years old, you get 2  days per parent. More information, see the official website from Ministry of Manpower here.

As typical corporate warrior, my friend takes childcare leave before annual leave. Well, childcare leave cannot be brought over to next year and cannot be encashed ( if your company allows encashment of leave). So as usual, she took her childcare leave first before annual leave.

However, last month, she noticed that her pay was cut... 

Well, her pay was cut not because of her company, not because of anything that she did at work. Rather it was because...

Of another clause in childcare leave. If you have 6 days of childcare leave per year, the employer pays for the first  days. For the next three days, your employer will get reimbursed by the government. 

If you were to look at MOM website on childcare leave, you will notice that for each day, payment is capped at $500 per day including CPF contribution. 

She earns more than $500 per day, hence this explains the pay cut when she took her childcare leave. When I asked her why did she take so long to find out about this, and she mentioned that she was not subjected to this cut in her previous company. To be fair, for the first 3 days of her childcare leave, her employer paid the full amount. It was from the fourth to sixth day( when the company claims from MOM) is she them subjected to the pay cut.

This reimbursement from MOM is done by the employer ( usually HR) behind the scene. Apparently most employers just pay the difference. But there are some that pay the exact amount they get from MOM. 

So, if you are a high income earners, and took all your childcare leave without any paycut, thank the government and your employer for the last 3 days of your childcare leave.


Have a great day!