When an employee is called for National Reserve Service (NRS) training, the payments the employee receives for the payroll period concerned must be split into two portions, one portion paid by the employer and another portion paid by the Ministry of Defence (MINDEF). To determine the two portions, the employee’s total wages are calculated and divided into an NRS amount and an amount for the rest of the payroll period.

NRS processing is set up according to the employee claim method. The employee’s pay for the NRS period is calculated and submitted to MINDEF who reimburses the employee. When payroll processing is performed for the period in question, the employer’s portion is calculated by deducting the NRS amount from the employee’s total wages.