Salary increase %

F

Fuma

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Suppose you earn R10K a month and from that R2500 goes to other allowances (car, cell phone, etc).
Basically your gross/basic salary is R7500
The company increases your salary by 10%.
Do they give you 10% of R10K or R7500?

I have a feeling it's R7500. Please tell me I'm wrong! :D
 
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I think you're wrong.

My increase was on gross
 
It should include ur car allowance.

Reason is, if you're not paying a car installment the money is yours. But you do get taxed ALLOT if you don't use it for it's purpose ;)
 
It should be on the R10k ... that is your total package, and thats what your increase should be based on
 
Pitbull said:
It should include ur car allowance.

Reason is, if you're not paying a car installment the money is yours. But you do get taxed ALLOT if you don't use it for it's purpose ;)
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for interest sake, as far as I know, its not how much you pay per month on your car that the tax man looks at, but how much your car is worth...

am I wrong?

So a car allowance of R3000, if you pay R1000 a month for your jetta 2008 model, or if you pay R3500, you will get taxed the same on that R3000 car allowance.
 
It varies from company to company however the generally accepted practice is that your basic salary is effected by your increase and not your travel allowance.

SARS is cracking down on car/travel allowances and company directors will now be legally liable for issuing these allowances for persons who do not travel for company business.
 
ncreases are based on total cost to company, therefore you will effectively receive an increase on your gross salary including all company contributions. Your tax contribution will therefore also increase (it even happens that you may get out less after an increase, thanks to tax bracket and service provider increases (such as provident fund, medical aid contribution increases, etc)).
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that is correct. Where I was working previously the bastards would post increases at a time when everything else increased. So I experienced salary shrinkage and I had to leave that job to get out of a financial squeeze
 
Turiko said:
that is correct. Where I was working previously the bastards would post increases at a time when everything else increased. So I experienced salary shrinkage and I had to leave that job to get out of a financial squeeze
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Beg to differ.

Most companies (in JHB anyway) increase Salaries usually about 1% above inflation annually. Therefore any allowance that is a % of you salary e.g. leave bonus etc will be increased naturally.

However, many increase allowances based on market rates or conditions e.g. AA rates and fuel costs (average cost for say 36000 km's p/a business) for car allowances. The same is for cellphone costs should you get an allowance (it may be based on contract or 3g costs). Some companies are really fanatical on these and exclude them from the total package concept as perks.
 
Most companies (in JHB anyway) increase Salaries usually about 1% above inflation annually. Therefore any allowance that is a % of you salary e.g. leave bonus etc will be increased naturally.
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Wish I was that fortunate at the time. Oh well it's in the past now, and now at least I can control this to an extent....
 
Heita_Hola said:
Suppose you earn R10K a month and from that R2500 goes to other allowances (car, cell phone, etc).
Basically your gross/basic salary is R7500
The company increases your salary by 10%.
Do they give you 10% of R10K or R7500?

I have a feeling it's R7500. Please tell me I'm wrong! :D
Click to expand...

Are the R10000 gross or net?
How about taxes and social security taxes?
 
It depends on the company. Many will only apply the increase to what they would call your base salary, i.e. excluding the canned benefits.
 
Is 37500 Rands (net) a good salary in SA (per month) ?

Some companies offer such an opportunity for managers in IT
 
samuelp said:
Is 37500 Rands (net) a good salary in SA (per month) ?

Some companies offer such an opportunity for managers in IT
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Yip!!!!!!! Thats a RS4, R1.5 Mill house and you still have R15k left to spend.
 
samuelp said:
Is 37500 Rands (net) a good salary in SA (per month) ?

Some companies offer such an opportunity for managers in IT
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It depends on the company.
I know a guy who's making R650K p/a as a senior developer.
 
I think you're speaking of similar values ... 37,500 net is 450,000 net which is more than likely 650,000 gross.

And I wouldn't mind earning that :)
 
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