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SINGAPORE: Around 2,300 past and present Mediacorp employees who were affected by an inaccurate formula used to calculate leave encashment have been paid the shortfall.
Those involved were paid less than they were owed when they left the employment of the company due to the error, which has since been rectified.
In a statement, the national media network said on Tuesday (Jun 20) that it has reached out over the past two days to those affected to inform them that the shortfall has been credited to their bank accounts. The average shortfall was S$38.88 (US$29), with 80 per cent within the range of S$2.76 and S$52.63.
The highest amounts ranged from S$1,100 to S$1,300, and applied to three individuals. Only those with monthly allowances in their salary who encashed leave – or received payment instead of using up their annual leave days – were affected.
“We are taking every effort to contact all affected individuals,” said Mediacorp, which owns CNA.
In its statement, Mediacorp apologised for the error and thanked all those affected for their patience and understanding.
The formula in effect between April 2009 and mid-February 2022 used base salary to calculate the value of encashed leave, instead of including monthly allowances such as business call subsidies.
A former employee highlighted the error in 2022. “Once the matter was brought to our notice, we proactively reviewed our system and records to resolve the issue. The formula has since been corrected. All other past and present employees can be assured that their salary payments have not been affected by this incident,” the company said.
It added: “Due to the complexity of the issue, we conducted a thorough investigation to identify the root cause, ensure that the revised calculations were accurate, address the Central Provident Fund (CPF) and income tax components, before processing payment and notifying the affected individuals.”
Mediacorp will be making the necessary CPF contributions on the shortfall.
“We will also be reporting the payment to the Inland Revenue Authority of Singapore and pay any corresponding applicable income tax on behalf of all affected individuals for the amount. This is to ensure that no further action is required from the affected individuals.”
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