The disparity between gross and net pay is getting ridiculous.
When I got my offer letter with a salary of 600k+, little did I know my take home was gonna be below 500k.
Tax, housing, pension, phew
What's your gross vs take home pay?

Usually less tax and pension.... housing tax not included

vapid:
The disparity between gross and net pay is getting ridiculous.
When I got my offer letter with a salary of 600k+, little did I know my take home was gonna be below 500k.
Tax, housing, pension, phew
What's your gross vs take home pay?

You pay 20% of your basic salary as income tax. Add that to pension deductions (usually 3-8% of your basic salary depending on the organisation) and whatever basic salary is left is added to your allowances to form your monthly take home pay.

Allowances are not taxable.

aieromon:

You pay 20% of your basic salary as income tax. Add that to pension deductions (usually 3-8% of your basic salary depending on the organisation) and whatever basic salary is left is added to your allowances to form your monthly take home pay.

Allowances are not taxable.

Actually it's 16.4% of basic. Pension is about 8.5%. Housing 2.5%.
I don't earn that much to have all these deductions considering the government doesn't do anything for me

vapid:


Actually it's 16.4% of basic. Pension is about 8.5%. Housing 2.5%.
I don't earn that much to have all these deductions considering the government doesn't do anything for me

Great, your organisation has been creative enough to restructure your income tax. Deducting 8.5% as pension is wrong under the Pension Act. Organisations are not obliged to make deductions for the National Housing Fund.

All the allowances (housing, transport, leave, miscellaneous etc) are not taxable.

What is taxed is your basic + housing + transport

2.5% of your basic goes to National Housing Fund (NHF)
Between 3 - 8% is deducted as pension

What is left is then taxed as stated below

200,000 + 20% of gross - relief allowance i.e not taxed
First 300,000 after relief allowance is taxed at 7%
Next 300,000 at 11%
Next 500,000 at 15%
Next 500,000 at 19%
Next 1,600,000 at 21%
Above 3,200,000 at 24%

I was also dazed when I realised my take home was a far cry from what was stated on my employment letter. The excuse was the tax and pension deduction.