24 Oct 2013

Govt chasing $10.4m in Novopay overpayments

4:19 pm on 24 October 2013

The Government says it is still chasing more than $10 million in overpayments made by the Novopay school payroll system.

The Minister responsible for Novopay, Steven Joyce, says Novopay has made 15,000 overpayments since it was switched on last year and $3 million has been recovered.

Mr Joyce says Novopay overpaid $13.5 million dollars since September last year. That is much more the previous pay system, which Mr Joyce says made about $2.5 million in overpayments each year.

With three-million dollars $3.1 millon already repaid and $62,000 written off because the sums involved were less than $100, the Government is trying to recover the remaining $10.4 million.

Mr Joyce says 6000 school staff have already been asked to repay $3.4 million, and letters are being sent to a further 6500 asking them to repay $7 million.

"We appreciate that it's a disruption that they didn't ask for and didn't need, so it should be done fairly carefully and with their support."

The minister says the money was overpaid in error and needs to be repaid.