Salary: How To Calculate And Calculate Correctly

Table of contents:

Salary: How To Calculate And Calculate Correctly
Salary: How To Calculate And Calculate Correctly

Video: Salary: How To Calculate And Calculate Correctly

Video: Salary: How To Calculate And Calculate Correctly
Video: How to Calculate Employee Salary Income Tax in Ethiopia - Payroll formula & Tax Rate Calculator 2021 2024, April
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The amount and terms of payment of wages are mandatory specified in the employment contract. According to the labor code, wages are remuneration for work. Its calculation and timely accrual is the responsibility of each employer.

Salary: how to calculate and calculate correctly
Salary: how to calculate and calculate correctly

Instructions

Step 1

Wages are calculated in accordance with the established tariffs, salaries, piece rates, information on the actual hours worked or the products produced by the employee. The remuneration system in commercial organizations is established on the basis of documents that establish the form, size and procedure for remuneration. These include employment contracts, employment orders, staffing, regulations on the procedure for remuneration of labor.

Step 2

In addition, wages are calculated on the basis of documents that confirm the fulfillment of the established production standards by employees. It can be a timesheet, production records, orders. The amount of wages in each month may be influenced by other factors, which are reflected in the memos on the reduction of bonuses, orders for incentives, etc.

Step 3

When calculating wages, the employer must notify the employee of how much is owed to him for a specific month. You can compose a payroll in any form. It is issued to employees at the end of the month or at the beginning of the next, when the final payroll takes place. The payroll indicates parts of the salary (advance, bonus, etc.), deductions from it, as well as the amount to be issued.

Step 4

The salary that is paid to the employee is the difference between the accrued salary and the deductions from it. In accordance with the labor code, remuneration for labor is charged monthly, and it is paid at least twice a month.

Step 5

Late payment of wages entails the payment of compensation to work, regardless of the reasons for the delay. Payroll should not depend on the volume and timing of receipts or the availability of funds from the employer. For late calculation and payment of salaries, the company also bears administrative responsibility.

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