Media firm says the formula has been fixed
State-owned Singaporean firm Mediacorp has repaid about 2,300 past and previous employees as it corrected an inaccurate leave encashment formula that was in use for more than a decade, according to a report.
Between April 2009 and mid-February 2022, Mediacorp has been using base salary to calculate employees' encashed leave instead of including monthly allowances, an error pointed out by a former staff member last year.
"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," the company said in a statement quoted by Channel News Asia.
The incorrect formula has affected thousands of Mediacorp employees with monthly allowances who encashed their leave, according to the report.
The company said it has so far repaid around 2,300 past and present employees who were affected.
"We are taking every effort to contact all affected individuals," the company said.
Prior to notifying affected individuals, Mediacorp said it investigated the root cause, ensured the revised calculations were accurate, and addressed the Central Provident Fund and income tax components.
"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," it said.
Other past and present employees will not have their salary payments affected by the incident, the media firm assured.
Mediacorp is national media network and the country's largest content creator. It operates various TV channels, radio stations, and multiple digital platforms, including CNA.
