Often asked: How To Calculate Overtime In Ethiopia Pdf?

How is salary overtime calculated in Ethiopia?

If a worker works beyond the stipulated working hours during the week days, i.e., 8 hours a day and 48 hours a week, he/she is entitled to an overtime premium as follows: – 150% of normal hourly rate for overtime work between 06 a.m. to 10 p.m.; – 175% of normal hourly rate for overtime work between 10 p.m. to 06 a.m.;

What is the formula for calculating overtime?

Overtime pay is calculated: Hourly pay rate x 1.5 x overtime hours worked. Here is an example of total pay for an employee who worked 42 hours in a workweek: Regular pay rate x 40 hours = Regular pay, plus. Regular pay rate x 1.5 x 2 hours = Overtime pay, equals.

How is payroll calculated in Ethiopia?

Salary Income Tax Calculation in Ethiopia, Pension, Gross Salary and Net Salary Calculator with Examples

  1. Salary Income Tax = (Gross Salary * Tax Rate) – Deduction.
  2. Employee Pension – Gross Salary x 7%
  3. Net Income = Gross Salary – Salary Income Tax – Employee Pension – Other Taxes (If applicable)
  4. Employee Pension – 7%
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How is basic salary calculated?

What Is Basic Salary? Definition, Formula & Income Tax

  1. Annual Basic = Monthly Basic X 12.
  2. Gross Pay = Basic + DA + HRA + Conveyance + Medical + Other.
  3. Basic = Gross Pay – DA – HRA – Conveyance – Medical – Other.
  4. Basic = Gross Pay X Percentage.

How do I calculate overtime pay?

Overtime Calculator

Overtime (OT) Calculator – Results
Payment Type Pay Rate Hours
Regular $15.00 40.0
Overtime $22.50 5.0
Total $15.83 45.0

How do you calculate overtime minutes?

The standard overtime rate is 1.5 times the employee’s regular hourly wage. This number is also commonly known as “time-and-a-half.” So if one employee makes $15 per hour, their overtime rate is $22.50 per hour ($15 x 1.5). If another employee makes $25 per hour, their overtime rate is $37.50 per hour ($25 x 1.5).

How do I calculate overtime and normal pay in Excel?

Basic overtime calculation formula

  1. =( regular time* rate ) + ( overtime * rate *1.5)
  2. Total pay for overtime: =(E4*G4)+(F4*G4*1.5)
  3. Total hours worked: =(C4-B4)*24.
  4. Regular time formula: =MIN(8,D4)
  5. Overtime: =D4-E4.
  6. =(E4*G4)+(F4*G4*1.5)
  7. =( regular time* rate ) + ( overtime * rate *1.5)

What is payroll tax in Ethiopia?

3. Income tax on employment income

Employment income per month (Birr) Rate of income tax (%) Deduction (Birr)
3,201-5,250 20% 302.50
5,251-7,800 25% 565.00
7,801-10,900 30% 955.00
Over 10,900 35% 1,500.00

How is business tax calculated in Ethiopia?

As per income tax proclamation no 979/2016, here are the business profit tax rates in Ethiopia. Schedule “C”

Taxable Business Income Tax rate Deductible Amount
19,401 – 38,400 15% 1,710
38,401 – 63,600 20% 3,630
63,601 – 93,600 25% 6,780
93,601 – 130,800 30% 11,460
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How do I calculate my net income?

How to Calculate Net Income. Subtract your employee’s voluntary deductions and retirement contributions from his or her gross income to determine the taxable income. Then, subtract what the individual owes in taxes (federal, state and local) from the taxable income to determine the net income.

How is monthly salary calculated?

In the calendar-day basis, the per-day pay is calculated as the total salary for the month divided by the total number of calendar days. Since October has 31 days, the per-day pay is calculated as Rs 30,000/31 = Rs 967.74.

What is the minimum basic salary?

6500 to Rs. 15000. Employers have to revise the PF deductions from September 2014 onward for all employees whose basic salary is less than or equal to Rs. 15000.

How is salary slip calculated?

CTC = Earnings + Deductions Here, Earnings = Basic Salary + Dearness Allowance + House Rent Allowance + Conveyance Allowance + Medical Allowance + Special Allowance. Given below is a simple example of a salary slip showing all the basic breakups under two heads, earnings and deductions.

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