Usamate clarifies issues on employer rebates

Minister for Employment, Industrial Relations and Productivity Jone Usamate. Picture: FT FILE

EMPLOYERS can claim tax rebates of 150 per cent for the newly introduced family care and paternity leave which comes into effect on January 1 next year.

While holding consultations with employers in Savusavu yesterday Minister for Employment Jone Usamate confirmed that the rebates would offset the newly introduced leave.

As an example, Mr Usamate said an employer paying $100 a day to a worker who took any of the two five-day leave was entitled a rebate of $750.

“The leave would be an extra cost burden on employers so in order to offset this for paternity leave and family care leave only employers can claim a 150 per cent tax rebate on the money they pay for the duration of both leave,” he said.

Speaking to employers yesterday Mr Usamate said the rebate would not apply for maternity leave.

“Come 2019 we are introducing the family care leave which will entitle workers five working days to look after their immediate family members or households should anything happen to them,” he said.

“Immediate and members of a household means occupants of a dwelling house who are financially dependent on each other or occupant of the dwelling house and immediate family consists of a workers spouse, child parent and sibling.”

Namale Resort’s manager Bill Keefe said the changes were welcomed, adding it was a win-win situation for employers and employees.

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