Why was I paid lower than my expectation?

📌I once had a salary conversation with someone who recently just got a new job.
He expected a particular amount of money in his account by month end, but he then got something different (an amount lower than his expectation)

📌What really could have happened? This wasn’t what I negotiated. If the company is not low on cash then this can be traced to a communication gap in Gross/Net Salary negotiation.

📌Make sure you KNOW the difference between your gross salary and your net salary. This is key!!!

📌Gross Salary: is the total amount of income you receive from all sources each month.

📌From all sources includes salary, bonuses, overtime, investment income, interests, Social Security and any other income sources.

📌Meanwhile, we can also refer to gross salary as “pay before deductions” This is what you earn BEFORE your taxes are being deducted from it.

📌Net Salary is your ‘take home’ AFTER all reliefs and statutory deductions has been taken care of.

📌Reliefs are meant to reduce the tax burden of a tax payer such as Consolidated Relief Allowance (CRF) which is calculated as thus:

N200,000.00 or 1% of your gross income whichever is higher, plus 20% of your gross income.

📌Statutory Deductions which are your;

1. Pension (8% from the employee and 10% from the employer)

2. National Housing Fund (NHF) (2.5% of your Basic Salary)

3. Pay As You Earn (PAYE) requires a little calculation to be done on your taxable income.

Note

📌Once Pay As You Earn (PAYE) is being deducted from your salary, then you should have a Tax Payer ID.

📌Same with your Pension.

I believe you found this resourceful.

Isabi4lov:

fixitbyjal:


Wassup bae long time

felong:
That's why there is gross pay and net pay.

Gross pay = Your actual salad

Net pay = Your pay after deductions.

oluseyiforjesus:
I wish you go to. Court

Rubyjade:


A

DaddyFreeze2020:


These calculations no concern people like Obi Cubana, E-money, Jowizaza and the majority of Igbos.
Na civil servants wey dey shout Yes Sir/Yes Ma dey depend on Government salary e concern .