Leave with Income Averaging Deadlines for Summer Holidays

January 22, 2021 - Defence Stories

If you’re planning on taking leave this summer, prepare in advance to avoid pay issues. Leave with Income Averaging (LIA) allows you to reduce your work hours, which reduces the amount on your paycheque and averages it out over a 12-month period.

Please note:

• By applying to take LIA, you are on leave without pay for a minimum of 5 weeks and a maximum of 3 months
• LIA is available for indeterminate employees only
• Your pension and benefits coverage, as well as your premiums and contributions, remain at the pre-arrangement levels

To apply for LIA, complete a Leave with Income Averaging application and submit it to your section 34 manager for approval 6 weeks or earlier before to the effective date. Tip: Your LIA period should start on the Thursday following payday.

Once the leave has been approved, the section 34 manager submits a Pay Action Request in the Human Resource Services and Support (work type: Leave, sub-type: Leave with Income Averaging) at least 20 business days before the salary reduction date. A Trusted Source forwards it to the Pay Centre. If this timeline is not followed, an overpayment can result.

Please note - Modifying or Cancellation of an LIA: Once the leave with income averaging application has been signed by both the participant and the person with the delegated authority, any changes to the arrangement will only be made in rare and exceptional circumstances.

For more details on LIA, visit the Compensation and Benefits website or read the Directive on Leave and Special Working Arrangements. To improve pay outcomes for employees, reference the Managers’ Pay Responsibilities Calendar [PDF-337KB].