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Calculation of Deductions - Wages Department
A range of deductions are complete from gross earnings when computing the net payment because of the employee, that deductions may be statutory or voluntary or obligatory in nature
- Statutory Deductions are pay like you earn or PAYE tax, and employees, pensions, national insurance contributions. The employer computes the amount because of, to be deducted utilizing the relevant rate in force and after that arranges to make a net payment in respect of each employee to the revenue authority.
- Obligatory Deductions are most likely to include payments to an approved pension fund. As an example of National Social Security Fund or NSSF. One time again it is likely that the employer will create a contribution in addition to the employee
- Voluntary Deductions include items like trade union subscription, charity contributions and deductions to saving schemes.
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