CALCULATION OF REMUNERATION
new schedule, published in terms of Section 35 of the Basic Conditions
of Employment Act, has established a method of calculating:
Application of this schedule:
This schedule will apply:
Payments included for the calculation of Remuneration:
When calculating an employee’s pay for annual leave, payment instead of
notice or severance pay, the following payments are to be included in
the calculation of remuneration:
short, when calculating the employee’s remuneration, the cost-to-company
of the employee must be used.
Payments NOT included for the calculation of remuneration
A rider... :
very important rider contained within this schedule reads as follows:
the employee received the payment or enjoyed, or was entitled to enjoy
the payment in kind during the relevant period then the abovementioned
payments will NOT form part of the calculation of remuneration.
is difficult to interpret this clause, but it is opinion of Bohlmann
Attorneys (see details below) that:
Payments of full contributions by the employer:
circumstances where the employer pays the full contribution to a fund or
scheme, such as a medical aid scheme or funeral scheme, the employee is
not entitled to payment or the cash value of this payment in kind as
part of remuneration.
Calculation for payments in kind:
The value of the payments in kind must be determined as follows:
The schedule comes into operation with effect from 1 July 2003 and only applies to the minimum payments that an employer is required to make in terms of the Basic Conditions of Employment Act, 1997.
This article was
prepared by Bohlmann Attorneys who provides a comprehensive range of
professional services in the field of employment law and related fields.
They seek to provide support to clients in achieving their Human
Resource and Industrial Relations goals. Heidi Bohlmann can be
contacted on 083 395 0259 or 021-7889815.
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