How to Calculate 2023 Salary Increment
Salary
Salaries for Public Sector Workers in 2023 have been increased by 30 percent. Here is how to calculate the new Base Pay increment as negotiated on 12th January 2023.
To arrive at the precise amount of money that will be added to your existing Gross salary, you have to engage in a few arithmetics.
Take note that your Gross salary is made up of Basic salary+Retention premium+other allowances (if only there are any).
Gross salary does not have the same figure. There is a variation because every worker has a different Gross salary.
Let’s walk through the process to calculate the 30% increment.
Before we proceed, keep in mind that COLA will not be part of your Gross salary.
Assuming we are calculating using GH¢2,500 as our Gross salary
In this case, we have to multiply the newly agreed on negotiated percentage by the Gross salary
Multiplication is commutative so you can
work it from both ends
Working/Calculations
30% × 2,500 or 0.3 × 2,500
NB: 30% is 0.3
OR
2,500 × 30% or 0.3 × 2,500
The product/the negotiated salary will be GH¢750.00
DEDUCTIONS
You ought to make some deductions here before you proceed.
SSNIT (5.5%) must be taken out. It means 94.5% will remain.
(100% – 5.5% = 94.5%)
After SSNIT (5.5%) deduction, you have 94.5% as the remaining negotiated amount.
Now multiply 94.5% by GH¢750
94.5% × GH¢750 or 0.945 × GH¢750
YOU HAVE TO GET GH¢708.75
The next deduction is Tax (17.5%)
Tax is calculated after deducting SSNIT (we have done it all. Do not panic)
Work it like this:
Tax (17.5%) × GH¢708.75
YOU HAVE TO GET GH¢124.03125
NET SALARY INCREMENT
GH¢708.75 minus GH¢124.03125 will give you the Salary Increment
GH¢708.75 – GH¢124.03125 = GH¢584.71875
In simple terms, a public worker who has a Gross salary of GH2,500.00 must see an additional GH¢584.71875 approximately GH¢584.72 in her/his salary by the end of January 2023 as stated on 12th January 2023 after the long negotiations started by Organised Labour in November 2023.
SOURCE:Â Coverghana.com.gh
