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Remuneration

Remuneration. Exercises. Exercise 8 Computation of average wage. In the first quarter of year 200 9 an employee worked 390 hours in standard work time. During this period he worked also 50 hours in overtime.

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Remuneration

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  1. Remuneration Exercises

  2. Exercise 8Computation of average wage In the first quarter of year 2009 an employee worked 390 hours in standard work time. During this period he worked also 50 hours in overtime. Time wage of employee with wage allowances for overtime work was 1100 € and monthly performance bonuses were together 115 €. Task: Compute an average hour wage of this employee in the first quarterof year 2009.

  3. Exercise 9Computation of net income An employee has a monthlytariff wage 511,35€. In October there were 22 working days which he worked all. Employee has one child. Task: 1, Compute net income of thisemployee. 2, Compute labour costs ofemployer connected to this employee.

  4. Exercise 10 Computation of net income Tariff wage of an employee is 453€. He has personal bonuses amounting to 20 % of tariff wage. In month there were 22 working days which he worked all. An employee has one child and wife who is unemployed with no own income. Task: Compute net income of employee in this month.

  5. Exercise 10 - procedure Gross wage = 453 + 90,60 = 543,60 € Insurance payments: health insurance (4 %) = 21,74 € sickness insurance (1,4 %) = 7,60 € unemployment insurance (1 %) = 5,40 € retirement insurance (4 %) = 21,70 € invalid insurance (3 %) = 16,30 € Totally (13,4 %) 72,74 € Tax base = 543,60 – 72,74 – 335,47 = 135,39 € Income tax = 0,19 * 135,39 = 25,72 € Net income = 543,60 – 72,74 – 25,72 + 20 = 465,14 € Deductible item per non-working wife is applied only once a year in annual income tax settlement (by computation of yearly tax) and does not influence calculation of monthly income tax (prepayment) and net income. Current value of deductible item per non-working wife (with zero income) is 4 025,70 €/year. If a wife has a certain income, deductible item per wife will be 4 025,70 € – yearly incomes of wife.

  6. Compulsory insurance payments (contributions) Notes: x - an employer sends 9 % to personal account of those employees who entered the second pillar of retirement system, xx - unemployment insurance for sole-proprietors is voluntary and the rate is 2 % of threshold.

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