Leave with income averaging deadlines for summer holidays!

April 27, 2022 -  Defence Stories

If you’re planning on taking leave with income averaging (LIA) this summer, prepare in advance to avoid pay issues. LIA allows you to reduce the number of weeks worked in a specific 12 month period by taking leave without pay for a certain period within that 12 months. Your pay would then be reduced and averaged out over the 12 month period to reflect the reduced time at work.

Please note:

• Approval of LIA is discretionary. Seek consultation with your manager as operational requirements could impact this approval.
• By applying to take LIA, you will be 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
• You cannot start a new LIA arrangement if you are currently on one.
• Your LIA period start date (12 month averaging period) does not need to be the same as the start of your LWOP period. For example, you can start a LIA period on 1 April (for 12 months) and take your leave period from 07 July to 19 August. 
• Your 12-month period of reduced salary must begin on the first day of a pay period (i.e. Thursday following a pay day)
• Your period of LWOP must be a duration of a minimum 5 weeks and a maximum 12 weeks

To apply for LIA, complete a Leave with Income Averaging application and submit it to your section 34 manager for approval 8 weeks or earlier prior to the start of your leave with income averaging period. Your section 34 manager must submit the application package by submitting a Pay Action Request in the Human Resource Services and Support (accessible only on the National Defence network) (work type: Leave, sub-type: Leave with Income Averaging) at least 6 weeks before the start of your 12-month income averaging period. 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 Pay and Benefits website (accessible only on the National Defence network) or read the Directive on Leave and Special Working Arrangements. To improve pay outcomes for employees, reference the Managers’ Pay Responsibilities Calendar [PDF - 195 KB] (accessible only on the National Defence network).

For questions about HR, access HR Connect RH online (accessible only on the National Defence network) or by calling 1-833-747-6363 (for Defence Team use only).