Parental / Adoption Leave Trust Claim (DSS)
Overview
Both employed parents or employed adoptive parents are entitled for four months each per child Parental / Adoption leave which has to be availed of until the child has attained eight (8) years of age. The first two (2) months or eight (8) weeks of paid Parental Leave, are not transferable between the parents and are eligible for benefit payment. However, the second two (2) months or eight (8) weeks of unpaid Parental Leave can be transferred between parents but are unpaid of any benefit.
Legal Notice 201 of 2022, provides that the first eight (8) weeks of parental leave is paid to the employer on behalf of parent / adoptive parent employees, on grounds of child birth or adoption. The applicable payment rate is the Married rate established for the Sickness Benefit for the year when Parental Leave was taken.
Employers shall claim a refund from the Department of Social Security for a maximum of eight (8) weeks of Parental / Adoption Leave period in four (4) two-week payment segments as shall be explained further ahead. The first four (4) weeks which may be claimed until the child is four (4) years old, can be claimed either separately in two (2) two-week segments or in one (1) four-week Parental / Adoption Leave claim.
In compensation the Maternity Trust Fund Contribution that came into effect as of 4th July 2015 through Legal Notice 257 of 2015 (Trusts and Trustees Act Cap. 331.), shall be adjusted to reflect the Work-Life Balance entitlements set up by Legal Notice 201 of 2022, of 12th July 2022.
The Public Service and Public Sector Entities, Authorities, Agencies and Public Corporations are exempt from this scheme’s contribution. However, Public Service and Public Sector employees are nonetheless entitled to the Parental / Adoption Leave., but not entitled for the refund by the Ministry/Entity involved.
What you’ll get
Under this scheme, employers will pay a maximum of eight (8) weeks of Parental / Adoption Leave to their employees which follow the birth / adoption of the child. Then they need to apply via a specific online application for a Refund of applicable benefit rates from the Department of Social Security when the employee returns to work. A claim for refund should be made for each individual employee and for each child as follows:
Fifty per cent (50%) or four (4) weeks of the entitlement paid for parental leave up to when the child is four (4) years of age.
Twenty-five per cent (25%) or two (2) weeks of the entitlement paid for parental leave up to when the child is between five (5) and six (6) years of age, and
Twenty-five per cent (25%) or two (2) weeks of the entitlement paid for parental leave up to when the child is between seven (7) and eight (8) years old.
Please click here for a schedule of Benefits Rates.
Application Requirements
Fill in and submit the application online.
Eligibility
General eligibility criteria:
Child has to be born or adopted on 02/08/2022 or after.
For Parental / Adoption Leave there needs to be an evidenced birth or adoption by the employee who is employed with the claiming employer for at least one (1) calendar year before the Parental / Adoption Leave Claim.
This means that, the employee should be employed with the claiming employer for a period of one (1) calendar year before the commencement date of Parental / Adoption Leave.
Since Self-Occupied persons do not contribute to the Maternity/Paternity Trust Fund, are not entitled to the Paternity Trust Fund Claim. Therefore, these schemes apply only to employed persons, and refunds are made through the Trust Fund to employers, according to the applicable rates established for each scheme.
Other Scenarios
The Maternity-Work-Life Balance Leave Contribution should still be paid according to the basic weekly wage for employees on half-pay.
It should also be paid for part-timers working on irregular hours, which is to be calculated according to the basic weekly wage.
Church Schools
Teachers working in Church Schools are not considered as public officers and therefore Maternity Leave Contribution should be paid in their respect.
Documentation required
General documentation:
Social Security Contributions receipts issued by the Commissioner for Revenue (CfR), covering one (1) year before the Parental / Adoption Leave Claim, showing the amount of Maternity contributions paid by the employer on behalf of their employees. Alternatively provide a yearly statement from the Commissior for Revenue online site.
Pay Slips for wage/salary paid during Parental / Adoption Leave, whereby the payslip has to clearly show the Parental Leave was paid at the Sickness Benefit married rate.
FS3 of the preceding calendar year of application.
In the case of separated parents / adoptive parents, the claiming parent / adoptive parent has to provide certified evidence to the employer that he/she enjoys the legal custody of child.
List of the Company Employees from JobsPlus, indicating employment commencement date at least one (1) year prior to the Parental / Adoption Leave Claim, which must not be older than one (1) week from date of application.