Mada za sehemu hiiPayroll AccountingMada 7
Net pay calculations
Net pay is obtained after deducting all required deductions from the gross salary. This is the take home pay.
The computation of net pay requires the following steps:
- Compute basic pay
- Compute gross pay
- Compute required deductions
- Compute net pay
Net pay calculation for Mr. Jumanne Mpimbi (March 2022)
Employee Salary and Deductions
| Step | Details | Amount (TZS) |
|---|---|---|
| 1 | Basic Salary | 780,000 |
| 2 | Meal Allowance (10,000/day for 22 days) | 220,000 |
| 2 | Transport Allowance (6,000/day for 22 days) | 132,000 |
| 2 | Medical Allowance | 200,000 |
| 2 | Rent Assistance (10% of Basic Salary) | 78,000 |
| 3 | Salary Advance | -150,000 |
| 4 | Gross Pay = Basic Salary + Allowances - Salary Advance | 1,260,000 |
| 5 | Development Levy (1% of Gross Salary) | 12,600 |
| 5 | NSSF Contribution (10% of Basic Salary) | 78,000 |
| 5 | Life Insurance (2% of Basic Salary) | 15,600 |
| 6 | PAYE 40,000 + 15% of (1,260,000 - 850,000) | 101,500 |
| 7 | Net Pay = Gross Pay - (Development Levy + NSSF + Life Insurance + PAYE) | 1,052,300 |
Gross Pay Calculation: 1,260,000
Total Deductions: 12,600 + 78,000 + 15,600 + 101,500 = 207,700
Net Pay = Gross Pay - Total Deductions: 1,260,000 - 207,700 = 1,052,300
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