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Before 1 July 1999, all pension payments (section 23(1)-'social security pension'), family payments, PPP and MOB were payday based (1.1.P.124) while entitlement to benefits (section 23(1)-'social security benefit') other than PPP was calculated over the 10 weekdays in a fortnight rather than for each and every day.
Act reference: SSAct section 23(1)-'social security pension', section 23(1)-'social security benefit'
All pension, family, MOB and PP payments were payday-based payments prior to 1 July 1999. The pension payday was every second Thursday. MOB and family payments payday was the Thursday in the alternate week. PPS was paid on pension payday, PPP was paid on family payments payday. Provided the customer was qualified (1.1.Q.10) and payable on the relevant payday they received a full instalment. The payment was made neither in advance nor in arrears.
Example: If a man turned 65 the day before pension payday, (provided he was otherwise qualified and payable), he would have been entitled to a full instalment of Age on the pension payday.
The rate of payment was struck as an annual rate and divided by 26. The customer's entitlement was 'stripped' on the Friday of the week before payday. No change in circumstance that took place between the strip and the payday could be taken into account in delivering the amount for the payday.
Benefits (section 23(1)-'social security benefit') other than PPP were period based as they reflected a customer's entitlement over the 10 weekdays in a fortnight. Customers were paid on a fortnightly basis, usually in arrears. Customer paydays could be on any weekday in the fortnight.
Act reference: SSAct section 23(1)-'social security benefit'
Changes in circumstances could be accommodated on different days. Entitlement was fortnightly (not daily) and could be a different rate on different days. Income was applied for the whole fortnight.
Example: The customer could be paid for specific days:
The 2 previous systems of calculating entitlement were largely incompatible; this created problems for customers and staff. Particular difficulties arose when customers transferred (1.1.T.140) between payments and either faced a period without entitlement or received more than one fortnight's payment.
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Last reviewed: 30 June 1999
