18 Sep 2013

Cost of Novopay rises to $28m

9:56 pm on 18 September 2013

The cost of fixing the school payroll system, Novopay, has risen to $28 million.

Novopay's logo

Photo: SUPPLIED

The Government has set aside another $6 million from an $8 million contingency fund to go towards ironing out technical problems and providing training ahead of the complicated summer pay period.

Principals' Federation president Phil Harding says summer will be a big test for Novopay and it's critical it goes better than last year when many school staff were underpaid, overpaid or not paid at all.

"It's both concerning and gratifying to hear the Government voting $6 million towards making sure that this end of year goes well, because if it doesn't I'm not sure what message that would send."

The minister responsible for Novopay, Steven Joyce, says the number of Novopay errors has settled at around 0.2% of fortnightly payments.

He says the $6 million will be included in the extra costs that Talent2, the designers of Novopay, will have to address in contractual discussions that will start once Novopay is running smoothly.

Hundreds still being wrongly paid

Steven Joyce says 151 schools were affected in the pay cycle on 21 August and 109 in the 4 September pay.

Thirty-nine staff were not paid, 134 were overpaid and 137 complained of being underpaid.