Frequently Asked Questions

1. What should be done by an organization if it is faced with financial difficulties to pay NEC minimum wages?

Exemption Application.

2. What are requirements of an exemption application?


  • Audited financial statements. A current balance sheet provided by the book keeper of the institution where an application is being made further
    than three months after the date of audited financial statements.
  • List of names, grades and current grades and current salaries of employees affected by the exemption application.
  • Reasons for such application.
  • Minutes of relevant meeting held with affected workers in which they were informed of the institution’s intention to seek exemption from paying the prescribed wages.

3. What are types of employment contracts in the welfare and educational industry?


  • Permanent contract
  • Fixed term contract
  • Casual contract

4. How and when overtime is compensated?


  • Overtime is performed when an employee works for hours that exceed the stipulated daily or weekly maximum
    working hours for such employee. Further, if an employee performs work during a specified holiday or during his/her
    day off.
  • Compensation of overtime: In a normal working week the employee shall be paid overtime at one and half times rate,
    whilst on a day off the employee shall be paid a double rate.

5. When does the organization pay travelling and subsistence allowances?


It is payable to an employee who is required to travel from his or her usual place of work as to necessitate his or her sleeping away from home. It is paid to cater for an employee’s breakfast, lunch, supper and transport, if not being provided by the employer.

6. When is gratuity paid?


It is paid when an employee has completed five or more of continuous service with the employer and is payable on employment contract termination.

7. How gratuity is calculated?


Gratuity formula is: Percentage*current monthly wages* number of years served

8. Is there any 12 annual leave days in the welfare and education industry?


There is no 12 annual leave days in the welfare and education industry. Types of leave stipulated are: vacation leave, sick leave, maternity leave and special/compassionate leave.

9. What are terminal benefits paid to employees on retrenchment?


Statutory terminal benefits such as outstanding salaries, allowances and benefits, notice pay, accrued vacation leave days, gratuity/pension. These are paid as per statute.

There is a set minimum compensation package of 2 weeks salary for every year served.