Minister for Economy Aiyaz Sayed-Khaiyum says they have managed to balance the cost to businesses by reducing the public holidays and having the 150% tax deduction after the introduction of the 5 days Paternity Leave and 5 days Family Care Leave from next year.
Sayed-Khaiyum says Paternity Leave would mean that fathers would assist mothers in looking after their babies while Family Care Leave is important for people as they need to look after their family members who get sick.
He says with the new leave days in addition to the employees’ annual leave, the 150% tax deduction is the major tax incentive provided to the employers.
Sayed-Khaiyum says they know that Family Care Leave is required by the employees.
Employers are now awaiting the Employment Relations Act amendments with all the necessary details like the requirements for Family Care Leave.
Some employers are saying that there needs to be proper requirements in place as the Family Care Leave could be abused by people who may just use the excuse that their family member is sick but that may not really be the case.
The 2018/2019 National Budget debate will start in parliament next Monday.
