To determine the Total Earnings and Income (TEI) for the month of Nehassia, we need to consider the basic salary, overtime pay, and transportation allowance.
1. Basic Salary:
Mr. X's basic salary is Br 1,200 net of tax. This means he receives Br 1,200 after tax deductions.
2. Overtime Pay:
Mr. X worked 190 hours, and since the normal working hours are 160, he has 190 - 160 = 30 hours of overtime.
Overtime work done on an employee rest day usually has higher pay, so we need to calculate the overtime pay for these 30 hours.
Let's assume the overtime pay rate is 1.5 times the regular hourly wage.
Regular hourly wage = Basic salary / Normal working hours = Br 1,200 / 160 = Br 7.50 per hour
Overtime pay for rest day work = Overtime hours * Overtime pay rate
= 30 hours * (1.5 * regular hourly wage) = 30 * (1.5 * 7.50) = Br 337.50
3. Transportation Allowance:
Mr. X receives a transportation allowance of Br 2,800.
Now, let's calculate the Total Earnings and Income (TEI):
TEI = Basic Salary + Overtime Pay + Transportation Allowance
= Br 1,200 + Br 337.50 + Br 2,800
= Br 4,337.50
The employment contract between Mr . X will receive a basic salary of Br 1,200 net of tax ( after the tax is deducted) and employer agreed to pay Br 310 tax to tax authority is the basic salary amount The normal working hours are 160 determine the TEI for the month of Nehassia and program assuming that Mr X worked 190 hours and all overtime work was done on employee rest day and transportation allowance of 2,800
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