Days leave / package

[Dolby]

Does this sound right to you :

I earn R12,000.00pm - in addition I have R2,000.00 medical aid and R2,000.00 pension - making my CTC R16,000.00.

I've just left and owe the company a day leave, so in my mind I earn R545 per day (R12,000 / 22) but on my payslip they remove R727.00 (R16,000 / 22) for the leave day

Surely when calculating ones daily rate, medical and pension are excluded?

 

[rorz0r]

You earn 16000 and then 2k goes to med aid on your behalf and 2k to your pension fund so that sounds right.

 

[Dolby]

So my benefits are included in my daily rate?
I'd need to pay the company back at R727 per day should I owe leave?

I'd have guessed they take your basic and exclude the benefits to calculate a daily wage because I really don't earn the R727.00.

So in an exceptional case of one earning R12,000 basic and R12,000.00 benefits - they're deem him to be earning double what he's actually taking home ; and should be owe 12 days, he actually owning more than his basic?

 

[rorz0r]

Yes. They presumably paid your full pension and medical aid for the month? In the extreme case you suggest they'd pay your benefits, you'd take the month off, then you'd owe them for the benefits they covered. (12k salary - 24k for taking off 22 days = you pay them 12k which is what they paid on your behalf but you didn't do any work)

 

[Hemi300c]

Worked on CTC.

 

[Dolby]

Ok.

Makes sense.

Thanks

 

[nkawit]

Worked on CTC.

+1

 

[bullfrog]

That would make sense to me as well.

In the end the extra day cost the company your salary + benefits which they paid. These are benefits which you will presumably still receive in one way or another.

This sounds fair to me and irrespective of your legal footing...is the effort worth R200?

From the companies perspective, this would probably look like an exercise to squeeze the last bit out of the company and will not leave you with any favorable references.

 

[noxibox]

Normal practice these days is to provide no actual benefits. Companies simply subtract a certain amount from what they call cost to company/salary and pretend on paper that those amounts are benefits.

 

[Dolby]

I actually prefer only a cash portion on a salary and I sort everything out.

Previous company I paid pension, funeral cover, income continuation, life cover, spouse cover and one or two things I didn't want or need. Which is why I was a little annoyed that my daily rate included all for that and I need to pay back.

The new company simply gave me cash equivalent

 

[Dolby]

This sounds fair to me and irrespective of your legal footing...is the effort worth R200?

Figures are only an example

 

[etwylite]

The taxman sees benefits as income so it would be the same for the company.

 

[Sinbad]

It works the other way round too. When I sell leave to the company they pay me at ctc rate which is quite nice

 

[LottaFun]

This makes me angry. My company also uses this cost to company concept. They say that my package includes medical and pension and deduct that from my monthly pay, but if you do deduct those amounts, then my base pay is way under the market!

I am very pro splitting these items instead of the CTC concept. Especially in these days where cost of living is crazy high. If they say you will earn 10 000 and then deduct medical, pension and tax, what you take home is far less.

In my opinion it is time to work on what you take home and not CTC. If they really want your expertise, they should state your take-home-pay and then smooth the pot with the other items.

So I want a higher THP!!!

 

[Dolby]

It works the other way round too. When I sell leave to the company they pay me at ctc rate which is quite nice

Don't think we could do that - not that I got a chance too

After 7 months I only took 3 days for myself - and still ended up owing them just under a day. The forced leave in December that some companies do should be relooked at, as i didn't start long before than and end up starting the new year on a negative.

If someone started December, they're start the new year with negative 7 ... and they'd be working the next few months just to get even

 

[Sonic2k]

This makes me angry. My company also uses this cost to company concept.

Cost to company is a very common thing in SA, its used to bamboozle the employee and make him think he is getting more when actually he is getting less.

 

[Sinbad]

Cost to company is a very common thing in SA, its used to bamboozle the employee and make him think he is getting more when actually he is getting less.

If you're so easily bamboozled then you're probably getting paid more than you're really worth