Overtime Payments Now Classified as Salaries, Exceeding $500,000

The government has announced a significant change in the classification of overtime payments owed to employees by the state?

These payments will now be categorized as ‘salaries’ based on a directive from the Cabinet. This adjustment means that overtime payments will be disbursed concurrently with regular salaries.

According to the Cabinet Notes, in the past month alone, overtime payments have surpassed $500,000.

Furthermore, the Treasury is currently prioritizing the distribution of gratuities, having already disbursed nearly $10 million in January, with an additional $20 million still pending.

On a positive note, various revenue streams, including Corporation Tax, ABST, Education Levy, and Customs Duty, continue to show growth.

However, there are ongoing concerns regarding the Tourism Guest Levy, which appears to be underreported by fully booked hotels.

To address this issue, the Inland Revenue Department is set to conduct an estimate of uncollected amounts and will actively pursue taxpayers who have not met the projected revenue targets.