TSC Computation of Salary Overpayment and Recovery Strategy

TSC Computation of Salary Overpayment and Recovery Strategy

Overpayment is calculated based on gross earnings minus appropriate statutory deductions, rather than net pay. It may happen in any of the following situations:

1. Absence.

Overpayments are calculated based on the employee’s basic compensation for the days they are absent. For any mandatory deductions, there will be no reductions.

2. Desertion

The net overpayment is calculated by subtracting the required deductions from the base wage plus all allowances.

3. Exit From Service

Employees may get an overpayment if they remain on payroll after leaving due to resignation, transfer, dismissal, or retirement.

An overpayment is calculated as basic salary plus allowances minus statutory deductions.

(a) Resignation

(i) If an employee resigns while on probation, they must provide seven days’ notice or pay the equivalent of seven days’ salary instead of notice.

(ii) If an employee resigns following probation, they must provide one month’s written notice or pay one month’s salary instead.

(b) Transfer of Service

When offered employment in the public service, employees must present the following documentation:

(i) A written application.

(ii) A photocopy of the appointment letter.

(iii) Clearance certificate.

After submitting the necessary conditions, the Commission will issue a last-pay certificate and an official release letter.

(c) Retirement.

(i) Salary overpayments can occur if an employee continues on payroll after mandatory retirement. It is recorded as basic salary plus allowances minus statutory deductions.

(ii) Employees who intend to retire voluntarily must provide three months’ written notice or pay one month’s salary.

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(d) Death.

If a teacher stays on payroll after death, he or she may get a wage overpayment. It will be calculated from the next day after death to the date of withdrawal from payroll. However, the home allowance for the month of death will be paid fully.

(e) Economic crimes and other offenses.

Lawful custody does not grant compensation to employees during their confinement. Should the court charge the employee with an offense, they will suspend their work and receive half of their basic wage, medical allowance, and housing allowance. Overpayments made during this period will be calculated if the employee is still on full salary after the charge date.

(f) Professional Misconduct.

This includes carelessness on duty, insubordination, infamous conduct, and exam irregularities. If an employee is interdicted for any of these violations, they will receive half of their basic wage plus a house allowance until the matter is resolved. If an employee receives full pay throughout the interdiction period, any overpayments will be computed.

(g) Other crimes

Examples of misconduct include immoral behavior, financial mismanagement, forgery, impersonation, collusion, and chronic absenteeism. Employees who are interdicted for these violations will not receive pay and will be placed on zero wage.

If an employee stays on payroll beyond the interdiction date, any overpayments will be calculated based on their entire basic wage plus allowances minus statutory deductions.

4. Leave.

The Commission offers many sorts of leave to its employees, including yearly leave, sick leave, study leave, special leave, compassionate leave, and maternity and paternity leave.

If an employee fails to report back for work assignment after a specified leave period, they may receive an overpayment. To calculate the overpayment, subtract the statutory deductions from the basic salary plus allowances.

(a) Sick leave.

An employee will receive sick leave as follows if they are ill for an extended period: Employees will receive full pay for the first three (3) months, ½ basic salary with full allowances for the next three (3) months, and sick leave without pay for the remaining six (6) months until they resume. Failure to meet the preceding conditions will result in an overpayment.

(b) Study leave without pay.

Employees who stay on payroll after taking unpaid study leave may face a salary overpayment. Overpayments will be calculated based on the teacher’s basic salary and allowances from the moment they stop teaching until they are removed from the payroll.

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Recovery Strategies: TSC Computation of Salary Overpayment

To redeem salary overpayments, the Commission will use a variety of measures, including:

i) Recovering at least 1/3 of the basic wage for all employees on payroll and ensuring each employee retains 1/3 of their net income.

(ii) Use payroll to recover all outstanding overpayments from salary arrears, including any balance.

(iii) Adjust the pace of salary overpayment recovery by using pay increments or salary adjustments.

(iv) Notifying employees of overpayments with a demand letter (see Appendix I).

(v) Taking action to recover overpaid salaries from former employees.

(vi) Recommending a write-off for any irrecoverable overpayment under Section 157 of the Public Finance Management Act, 2015.

The Commission secretary must be satisfied that reasonable attempts have been made to recover irrecoverable losses. Additional efforts to recover the loss would be uneconomical. The Commission may benefit by settling or waiving its claim.

If an employee leaves the commission before all overpayments are collected, any outstanding sum becomes instantly due and payable per government law.

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SANCTIONS

It shall be the expectation that all employees of TSC exercise trust and conduct themselves in good faith in the event of any overpayment. An employee will be deemed to have acted in bad faith if the following conditions are met:

(i) they must have intentionally or negligently failed to ensure that the Commission received pertinent information that affected the amount payable;

(ii) they must have suppressed a material fact that affected the amount payable;

(iii) they must have knowingly failed to bring an overpayment to the Commission’s attention; and (iv) they must have failed to make inquiries or verify employment particulars with the Commission when they could have reasonably done so.

APPENDIX I: SALARY OVERPAYMENT DEMAND LETTER — **SALARY OVERPAYMENT DEMAND LETTER. TSC Computation and Recovery Strategy**

Discipline

(i) Per the Human Resource Policies and Procedure Manual for Secretariat staff (2018) and the Code of Regulation for Teachers, disciplinary action shall be administered to any employee found responsible for a TSC Salary Overpayment.

(ii) In accordance with Regulation 168 of the CORT and 134 (5) of the Human Resource Policies and Procedure Manual for secretariat staff, a supervisor or head of the institution who neglects to notify the commission of an employee’s departure shall face disciplinary consequences and a surcharge equal to the commission’s loss.
Management of Salary Policy 17

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(iii) The following guidelines shall be applied when imposing a surcharge on an employee responsible for salary overpayments:

In cases where salary overpayments have been deemed irretrievable, the Commission shall seek full reimbursement from the employee or employees responsible for the loss.
In cases where the salary overpayment is recoverable, an additional charge equal to the interest rate set by the Central Bank may be assessed.
If a Director of Field Services (FS) or Human Resource Management and Development (HRM&D) determines that an employee or staff member is responsible for salary overpayments, disciplinary action will be initiated.

Criminal proceedings

In conjunction with other state agencies, the Commission may advise that criminal proceedings be initiated against ANY employee who is suspected of collaborating with such individuals.