CHAPTER

PERSONNEL EXPENSES
The Net Salary earned by a worker at the end of a given period usually a month results from a mechanism
integrating the elements of a salary, deductions with a fiscal nature and contributions according to regulatory
rates.

I- GENERAL NOTIONS OF PERSONNEL EXPENSES

I.1- PERSONNEL EXPENSES
The term Personnel Expenses constitute all the expenses incurred by an enterprise or employer on the
account of the employees called personnel. These expenses have the following components: Gross Salary,
Employee’s deductions and Employer’s deductions.

I.2- PERSONNEL
Personnel include everybody who is under the authority of another person or body called employer, to carry
out some work or render a service for a remuneration called salary.

This definition helps us to understand that an individual exploiter is not a personnel because his is not under
the authority of another person. His remuneration is recorded in the debit of account (1043 – Remuneration,
taxes and other personal expenses).

It is the same for a Chartered Accountant, a Consultant Engineer, a Sub-contractor and any other personnel
who renders an on the spot or time to time intervention in an enterprise. The remuneration for their
intervention is not called personnel expenses but it is known as honorarium and is recorded in the debit of
account (6324 – Professional honorariums).

I.3- SALARY
According to Article 61.1 of the labour code, Salary is a remuneration or earning evaluated in cash and fixed
either through an agreement, a regulatory dispositions or by conventional dispositions. It is due by virtue of
a written or verbal contract between the employer and the employee for work to be done or service to be
rendered.

I.4- FORMS OF SALARY

1.4.1- Time Based System: Under this form of salary, a worker is paid a basic rate per hour for the
number of hours he has worked on a daily, weekly or monthly basis.

1.4.2- Output or Performance Based System: Here, the salary paid is based on the output
(performance) of the worker. It is also called “Piece Work Salary” where the salary earned is in
function of the quantity or number of pieces produced by the worker.

Some enterprises combine the two forms of salary together by paying a time based salary and an output
bonus or allowance in order to maintain a balance between the two parties.

I.5- LEGAL PRESCRIPTIONS RELATING TO THE PAYMENT OF SALARY

For the treatment of salary, the law imposes a certain number of issues to be considered by the employer as
follows:

1.5.1- The Payment Day

It should be the last working day of the month which the salary is expected or eight (8) days latest after the
end of that month.

1.5.2- The Place of Payment

It is established by a convention and in its absence, it should be precisely at or proximity to the place of work
in the case of payment in cash but should not be in a public drinking, games or sales place except for
workers of such places.

1.5.3- Periodicity

Notes by Ngwen Abienwi Cynthia BSc, PLET in Accounting Page 1

Salary should be paid at a regular interval not exceeding fifteen (15) days for wage earners and a month for
salary earners. However, the latter can have an advance salary after the first fifteen (15) days which can be
half of their monthly basic salary.
1.5.4- The Payment Voucher
The payment of salary has to be stated in a payment voucher (Pay slip). The issue of a pay slip is
compulsory and the employer can face a legal sanction if it is not issued to the employee. The pay slip has
to include all the elements of salary and deductions and these have to enable the verification of the
exactitude of the net salary. It should be established in at least two copies for each worker.

II- COMPONENTS OF SALARY

The Components of salary are the gross salary and employee deductions.

2.1- GROSS SALARY

Gross Salary is the amount of salary an employee is due to earn before any deductions are made; thus the
gross salary is composed of the Basic Salary, Overtime earnings, Premiums or bonuses, Allowances and
Advantages in kind.

2.1.1- BASIC SALARY

The Basic Salary represents the earning of an employee for a normal legal workload of 40 hours per week
or 173 hours per month. It is equally the salary concluded in the work contract or drawn from a collective
labour convention. It should not be less than the guaranteed minimum wage in our case. It can vary from
one sector of activity to another, from one zone of salary to another, from one professional category to
another, from one echelon to another and equally from one worker to another.

2.1.2- OVERTIME EARNING

The normal legal duration of work of an employee is forty (40) hours a week. In some sectors, due to their
specificity, the normal workload of an employee varies as follows:
• 45 hours a week for personnel working in hospitals and assimilated institutions, beauty salon,
• 48 hours a week for personnel working in agricultural firms,
• 54 hours a week for personnel working in hotels, restaurants, bars and private homes,
• 56 hours a week for personnel in charge of security, surveillance or fire fighting,

Overtime hours represents the hours paid to an employee because of work performed beyond the normal
workload and which are not considered as hours of equivalence, hours of prolongation, hours of
recuperation or hours worked on Sundays, legal public holidays and night work after 10 P.M (for workers
working during the day). Overtime earning is calculated by increasing the hourly rate with a certain
percentage. The increase rate of overtime for normal workload of forty (40) hours a week is as follows:
Overtime interval Increase Maximum total
duration
First 8 hours (41 – 48) 120 %
The following 8 hours (49 – 56) 130 %
The following 4 hours (till 20 hours per week) (57 – 60) 140 % 10 hours per day and 60
Sundays and legal public holidays 140 % hours per week
Night hours (after 10 P.M) and emergency during non-working 150 %
days

• If the Basic Salary is paid on the basis of an hourly rate, then the rate is used to calculate
overtime earnings,  If the Basic salary is a monthly lump sum, then the hourly rate is
calculated by using the following formula:
The hourly rate =
• To determine the 173 hours, proceed as follows: o Normal weekly load = 40 hours, o Number
of weeks in a year = 52 weeks,

Notes by Ngwen Abienwi Cynthia BSc, PLET in Accounting Page 2

 o Number of weekly hours in a year = (40 x 52) = 2080 hours, o Number
of months in a year = 12 months,

o Number of hours in a month = hours,

In addition to the normal legal duration of work of 40 hours per week and specificities of some sectors of
activities, the following are respectively considered as normal hours of work:

• EQUIVALENCE HOURS
These are hours considered to be normal hours in some professions in order to make up for moments of
inactivity thus: 45 hours, 48 hours, 54 hours and 56 hours per week are respectively equivalence hours of
work in those professions.

• HOURS OF PROLONGATION
Such hours are authorised in the following cases:
- Work Constraints or imperatives: relating to preparatory or complementary works not susceptible
to be done within the established or normal schedule.
- An Act of God: Work on a technical operation which cannot be ended at will due to the normal or
regular schedule.
- Work Emergency: Argent or Emergency works include works such as prevention of imminent
accidents, off-loading of an aeroplane, ship or camion.

• HOURS OF RECUPERATION
Hours recuperated or recovered are the hours lost in case of an act of God (force majeur), accidental
scarcity of materials, disaster, bad weather etc.
The recuperation should be done during working days and should respect the break time of workers.
The hours should be limited to the number of normal weekly hours less the number of hours actually worked
during the week.

Hours lost due to strike or luck out are not recuperated or recoverable.

Example: Two employees of an enterprise are remunerated in the

following manner:  The first employee Paul, is paid hourly at
500F,
• The second employee Peter has a fixed monthly basic salary of 155,997F,
During the month of August, the two employees put in the following hours:
1. Paul:
1st Week: 50 hours + 2 hours of at
2nd Week: night,
3rd Week: 57 hours,
4th Week: 30 hours + 6 hours on
Sunday,
43 hours,

2. Peter:
Weeks Mon. Tue. Wed. Thur. Fri. Sat. Sun.
1st Week 8 10 10 9 9 9 -
2nd Week 7 5 10 10 - - 6
3rd Week 8 10 10 10 10 4 -
th
4 Week 10 10 10 10 10 - 5
NB: Wednesday of the third week was not a normal
working day, Task:
1. Present a Tally sheet of hours of each employee,
2. Calculate the total earning of each employee,

Notes by Ngwen Abienwi Cynthia BSc, PLET in Accounting Page 3

 SOLUTION
1.a- Presentation of the tally sheet of hours of PAUL
Overtime Hours
Total Normal
Weeks
Hours Hours 120% 130% 140% 150%
1 Week
st
52 40 8 2 - 2
2nd Week 57 40 8 8 1 -
3rd Week 36 30 - - 6 -
4th Week 43 40 3 - - -
Totals 188 150 19 10 7 2

1.b- Presentation of the tally sheet of hours of Peter

Total Normal Overtime Hours

Weeks
Hours Hours 120% 130% 140% 150%
st
1 Week 55 40 8 7 - -
2nd Week 38 32 - - 6 -
3rd Week 52 40 2 - - 10
4th Week 55 40 8 2 5 -
Totals 200 152 18 9 11 10

2.a- Calculation of the total earning of Paul

Basic Salary (150 x 500F) 75,000F
Overtime at 120% (1.2 x 500 x 19) 11,400F
Overtime at 130% (1.3 x 500 x 10) 6,500F
Overtime at 140% (1.4 x 500 x 7) 4,900F
Overtime at 150% (1.5 x 500 x 2) 1,500F
Total Earning 99,300F

2.B- Calculation of the total earning of Peter;

Basic Salary 155,997F
Overtime at 120% (1.2 x 900 x 18) 19,440F
Overtime at 130% (1.3 x 900 x 9) 10,530F
Overtime at 140% (1.4 x 900 x 11) 13,860F
Overtime at 150% (1.5 x 900 x 10) 13,500F
Total Earning 213,327F
Hourly rate = = 900F
NB: It often occurs that a week ends between two months. For instance, the month of August ends on
Thursday and the month of September begins on Friday. If during that week an employee worked 36 hours
from Monday to Thursday and 20 hours from Friday to Saturday, for the calculation of the salary of August,
only the 36 hours will be considered. But for the calculation of the salary of September, the 36 hours will still
be considered to determine the overtime hours for that week. Thus, we will have a total of 56 hours for the
week, and on the 20 hours of September, 4 hours will be considered as normal hours while 16 hours as
overtime hours (8 hours at 120% and 8 hours at 130%).

2.1.2- Bonuses or Premiums

Premiums represent supplementary amounts received by an employee on his normal earning either to
compensate his efforts or for outstanding services rendered by him. We distinguish between regulated
and non-regulated premiums thus:

 REGULATED PREMIUMS: Here, we have only Seniority premium.

Notes by Ngwen Abienwi Cynthia BSc, PLET in Accounting Page 4

Seniority Premium was instituted by decree No. 10 of 20th April 1971 to render the decision of national
committee on collective conventions and workers executable. The objective of seniority premium or bonus
is to enable the worker to build up his/her career in the enterprise.

Seniority corresponds to the effective time of service accomplished by a worker continuously in different
departments of the enterprise or its subsidiaries. Seniority premium is paid to a worker as from the first two
years of continuous work in the enterprise henceforth. It is calculated on the minimum salary of the
professional category and class of the worker (Salary of Echelon A). The rate is 4% after the first 2 years
and 2% per year as from the 3rd year (there is no ceiling)

Example: Determine the rate of seniority premium of the following employees for the calculation of gross
salary of the month of January 2015.
Employees Date of employment
Banadzem 10/04/2000
Ndonwi 1/02/2010
Amuam 15/01/2013
SOLUTION
Determination of the rate of seniority premium
Employees Date of employment Seniority on 31/12/2014 Rate of Seniority
Premium
Banadzem 10/04/2000 14 years 8 Months 28%
Ndonwi 1/02/2010 4 years 11 Months 8%
Amuam 15/01/2013 1 year 11 Months 0%

• NON REGULATED PREMIUMS: These are premiums freely fixed or instituted by the
employer.
Examples include; Output premium, Assiduity premium, Technicality premium, Duty post premium,
Safety/risk premium, 13th month salary etc.

2.1.3- INDEMNITIES OR ALLOWANCES

An allowance represents an amount due to an employee in addition to his normal earning to compensate
(reimburse) him for expenses incurred on behalf of the enterprise and/or amount destined to mend injuries
or damages in their work. The main allowances are made up of:
• Housing allowance,
• Displacement or outstation allowance,
• Entertainment allowance,
• Leave allowance,
• Milk allowance,  Redundancy payment,  etc.

2.1.4- ADVANTAGES IN KIND

Advantages in kind consist of the free concession of some goods and services owned or rented by the
employer to the employee to ease his work and consequently his life. These advantages could be materially
furnished to the employee or evaluated as indemnities in monetary terms but representing advantages in
kind.

The Labour code in its article 66 has imposed two advantages in kind to be offered to the employee by the
employer. These are housing and food and by extension, domestic servant, light, water, and service vehicle
are offered to some high personality employees.

The evaluation of advantages in kind is not done in the same manner by the fiscal authority and the social
organisation (NSIF) thus the following table indicates their respective rates of evaluation.
Advantages in kind Fiscal Evaluation Evaluation by NSIF
Housing 15% 1 time per day of work
25% per person (1/2 for Children below 15
Food 2.5 times per day of work
years) with a max. of 50,000F per month

Notes by Ngwen Abienwi Cynthia BSc, PLET in Accounting Page 5

Light 4%
Water 2%
Domestic Servant 5% per domestic servant
Vehicle 10% per vehicle
Taxable salary before advantages in kind or Hourly rate of the 1st category &
Basis of
intermediary taxable salary) echelon 1 of the sector
Calculation
considered
NB: If the worker is lodged or housed in a building belonging to the enterprise, the rate of 15% is still
applied.

Example: In the secondary and tertiary sector, the hourly rate of category A echelon 1 is 165F. During the
month of January, an enterprise in this sector tallied 26 days of work excluding Sundays and New Year day.
Task: Evaluate the contribution to NSIF for a worker who is housed and fed.

SOLUTION
Housing : 1 x 26 x 165 = 4,290F
Food : 2.5 x 26 x 165 = 10,725F

2.1.5- EXCEPTIONAL ELEMENTS

They are essentially spontaneous or irregular elements and include arrears of previous payments,
gratifications, allocation of the 13th month salary etc.

2.1.6- ADVANTAGES IN CASH

These are essentially the indemnities representing advantages in kind evaluated in cash e.g. housing
allowance.

III- DEDUCTIONS ON SALARY

These are deductions which reduce the gross salary to the net salary received by an employee. They
include taxes, para-fiscal rates and taxes and other deductions (oppositions, seizure order made by
creditors, social or syndicate contributions etc.)

These deductions are deducted at source by the employer who has to transmit to the different beneficiaries
(Public treasury, NSIP, Syndicates, Creditors ...).

3.1- BASIS OF CALCULATION OF THE DIFFERENT DEDUCTIONS

The table below enables the determination of the different bases on which the respective deductions are
calculated.
Basic Salary
- Add Overtime earnings,
- Add Premiums,
- Add Indemnities,
- Add Advantages in cash,
- Add Exceptional Elements,
= GROSS SALARY
- Less Representation Indemnities,
- Less Displacement Indemnities,
- Less Indemnities in cash representing Advantages in kind,
- Less Special allocations destined for expenses inherent with duty or employment,
= TAXABLE SALARY BEFORE ADVANTAGES IN KIND (INTERMEDIARY TAXABLE SALARY)
+ Add Taxable advantages in kind

= GROSS TAXABLE SALARY

Notes by Ngwen Abienwi Cynthia BSc, PLET in Accounting Page 6

 - less 4.2% of Contribution salary to NSIF
-Less 30% of Gross Taxable Salary representing Professional expenses
- Less Fixed Tax allowance (41,667 per month or 500,000 per year)
= NET TAXABLE SALARY

NB: If the amount representing advantages in kind is:

- Less than the flat amount obtained by applying the fiscal rate on the evaluation of these advantages,
the actual amount is used in the taxable salary,
- More than the flat amount, then the flat amount is used in the taxable salary.

Example:
The elements of salary of two employees are given in the following table:
Employee A Employee B

 Basic Salary 250,000F  Basic Salary 150,000F

 Seniority premium 80,000F  Seniority premium 35,000F
Technicality premium 20,000F Basket premium 25,000F
 
Representation indemnity 40,000F Displacement indemnity 30,000F
 
Housing indemnity 50,000F Housing indemnity 40,000F
 Transport allowance 20,000F  Transport allowance 20,000F

Task: Determine the net taxable salary of each employee.

Exercise
In the month of July 2014, Bate Rene received a basic salary of 156,000f. he put in an overtime of 19 hours
of which 2 hours was executed late in the night after 10 pm in order to meet up with a customers demand.
The following allowances were imputed in his pay slip
Longevity allowance 4% of basic salary
Technical allowance 20,000f
Vehicle allowance 30,000f
Lodging allowance 25,000f
Water 5,000f
Electricity 7,000F

Required
1. Calculate the hourly wage rate of the worker
2. Determine the overtime earned by the worker
3. Find the net taxable salary and the contribution salary for the month
3.2- CALCULATION OF THE CONTRIBUTION SALARY
The basis of calculation of National Social Insurance Fund (NSIF) deductions (contributions) is known as the
Contribution salary. It is calculated as follows:

Basic salary
+ add overtime
+ add Taxable allowances ( including Bonuses)

= Intermediate contribution salary

+ add benefits in kind
= contribution salary

The contribution salary is usually equal to the gross taxable salary, and the amount of the contribution
salary should not exceed 750,000fcfa per month.

Taxable and contribution salary do not constitute elements of the pay slip. The are only calculated to
constitute the basis for the calculation of fiscal and social deductions.

Notes by Ngwen Abienwi Cynthia BSc, PLET in Accounting Page 7

Deductions on salary
a) fiscal deductions

the main fiscal deductions are: PIT, ACT, LDT, LBT, and AVT
1) Personal Income Tax (PIT)

This tax is not levied on grass taxable salaries less than 62,000f. it is calculated on the net taxable salary.
The amount of PIT is read on a scale based on the taxable salary. It can equally be calculated based on
peculiar rates as indicated on the following table
Rate of calculating (PIT)
Gross Taxable Salary(GTS) Rate PIT
Less than 62,000 0% 0
From 62,000 to 310,000 10% [(GTS x 70%) – (GTS x 4.2%) -41,667] x 10%
From 310,001 to 429,000 15% [(GTS x 70%) – (GTS x 4.2%) -41,667] x 15%
From 429,001 to 667 000 25% [(GTS x 70%) – (GTS x 4.2%) -41,667] x 25%
Above 667 000 35% [(GTS x 70%) – (GTS x 4.2%) -41,667] x 35%

If the net taxable salary is known, the stipulated rate can be applied on it in order to have PIT

2) Additional Council Tax (ACT)

It is 10% of PIT to be paid to the local council through the government treasury

3) Local Development Tax (LDT)

this tax is deducted from the wage of workers and paid to councils for the provision of public water, street
lights, garbage collection, and ambulance. It is usually read on a scale based on the basic salary as shown
on the following table

Table of local development tax

Basic salary Monthly tax Annual tax
Less than 62,000f 0 0
From 62,000f t0 75,000 250 3,000
From 75,001 to 100,000 500 6,000
From 100,001 to 125,000 750 9,000
From 125,001 to 150,000 1,000 12,000
From 150,0001 to 200,000 1,250 15,000
From 200,001 to 250,000 1,500 18,000
From 250,001 to 300,000 2,000 24,000
From 300,001 to 500,000 2,250 27,000
Above 500,000 2,500 30,000

4) land bank Tax (LBT)

This tax is 1% of the gross taxable salary paid to Credit Foncier Du Cameroun through the government
treasury. The aim of the tax is to enable Cameroonians obtain construction loans from CFC. Salaries less
than 25,000f are exempted from the tax.

5) The Audio Visual Tax (AVT)

This tax is aimed at supporting AUDIO VISUAL industry. It is directed to CRTV and other audio visual
companies in Cameroon. Gross taxable salaries of 50,000f and below as well as workers in the agricultural
sector are exempted from this tax. It is calculated based on the gross taxable salary according to the
following scale

Notes by Ngwen Abienwi Cynthia BSc, PLET in Accounting Page 8

 Gross taxable salary per month Audio visual tax(CRTV contribution)
0 – 50,000 0
50,001 to 100,000 750
100,0001 to 200,000 1,950
200,001 to 300,000 3,250
300,001 to 400,000 4,550
400,0001 to 500,000 5,850
500,001 to 600,000 7,150
600,001 to 700,000 8,450
700,001 to 800,000 9,750
800,001 to 900,000 11,050
900,001 to 1,000,000 12,350
Above 1,000,000 13,000

b) social deductions
they are composed mainly of NSIF and Trade union contributions.

i) National social insurance fund (NSIF)

the NSIF is the contribution for old age pension. The employee contributes 4.2% of the contribution salary
which is deducted at source and paid to NSIF. The maximum contribution salary per month is 750,000fs as
such the maximum NSIF to be deducted from salary is 4.2% of 750,000fr which is 31,500f

ii) Trade Union Contribution (TUC)

this contribution is 1% of the basic salary and is deducted at source for workers who are members of trade
union

c) other deductions
other deductions that can be made on salary are advance salary. That is if the worker had collected his
salary in advance it will be deducted from the salary of the month. Deductions can also be made by court
order to pay debts. The employee can also ask the employer to make certain voluntary deductions like
savings, njangi.

Employers contribution
The employer is supposed to make a certain portion of the fiscal and social contributions on behalf of
employees. These include
- Fiscal contributions
 Land bank tax (LBT) 1.5% of gross taxable salary
 National Employment Fund (NEF) 1% of gross taxable salary
- Social contributions
 Old age pension (NSIF) 4.2% of contribution salary
 Family allowance
It is calculated on the employers contribution salary which must not be more than 300,000frs
As follows
- 7% for enterprises in the secondary and tertiary sector ( general sector)
- 5.65% for enterprises of the primary sector ( agricultural sector)
- 3.7% for enterprises in the educational sector

 Labour accidents and professional illness

It is calculated on the contribution salary as follows
- Low risk enterprises 1.75%
- Average risk enterprises 2.5%
- High risk enterprises 5%

Notes by Ngwen Abienwi Cynthia BSc, PLET in Accounting Page 9

 Accounting entries for salaries

Generally, the pay slip is recorded as follows

date
661 Remuneration to personnel Gross salary
421 Personnel advances Advance salary
422 Personnel wages due Net salary
425 Personnel trade union deductions Trade union
431 Welfare organisations Social deductions
447 State tax deductions at source Fiscal deductions

Being payslip no……….

Generally, the employers coontributions are recorded as follows

date
664 social expanses on personnel Social contribution
6413 taxes on salaries and wages Fiscal contribution
431 Welfare organisations Social contribution
447 State tax deductions at source Fiscal contribution
Being employers contribution

When the salaries are paid the following entries are made
date
421 Personnel advances Advance salary
422 Personnel wages due Net salary
425 Personnel trade union deductions Trade union
431 Welfare organisations Social deductions
447 State tax deductions at source Fiscal deductions

521/57 Bank/ cash

1 Being payment of salaries Gross salary +
employers
contributions

Documents used in personnel expenses

1) payroll register
It shows the details of the salaries and deductions of all the workers of the enterprise. Below is a specimen
but it can vary from enterprise to enterprise
Names of category Basic allowances Deductions Net
employers salary PIT ACT LDT LBT AVT NSIF salary

Total

Notes by Ngwen Abienwi Cynthia BSc, PLET in Accounting Page 10

2) Pay slip
A pay slip is a document handed by the employer to the worker showing the details of his salary and
deductions
Sample of a Pay slip

Worker’s Name …………………………………... Employer………………………………..

Worker’s Category………………………………..
Worker’s post ……………………………………….
Worker’s NSIF No…………………………………. Rate of Pay………………………………
Worker’s address………………………………… Date of Pay………………………………

Basic salary ………………………………

Overtime at 120% ………………………………….
At 130% ………………………………….
At 140% …………………………………..
At 150% …………………………………… …………………………………
Lodging allowances ………………………………….
Gross Salary ………………………………...
Deductions: Fiscal Deductions
PIT ………………………………….
ACT …………………………………..
LBT …………………………………..
AVT …………………………………… ………………………………..
Social Deductions
NSIF …………………………………….
TUC …………………………………… ……………………………………
Total Deductions ……………………………………
Net salary ……………………………………

Signature of Employer signature of employer

………………………………………….. ……………………………………………

Exercise
CYNDY works for NGWEN as a Category 8 worker and occupies the post of a Field supervisor. His
hourly agreed rate is 1,200f. his basic salary is calculated in relation to his normal working time of 40
hours per week. His hours of work have been extracted from his time sheet for February 2020 and
presented as follows.
- First week: 59 hours, including 4 hours on Sunday and 5 hours done late at night after 10pm
- Second week: 50 hours including 8 hours on a public holiday
- Third week: 58 hours including 3 hours on Sunday
- Fourth week: 42 hours including 4 hours on Sunday

Notes by Ngwen Abienwi Cynthia BSc, PLET in Accounting Page 11

 The total hours for the month stood at 209. Overtime is paid on the basis that workers complete their
normal weekly workload of 40hours. Recovery hours are usually done on Sunday. All workers earn a
lodging allowance of 20% 0f the basic salary. The following deductions are made on salaries
- Personal Income Tax (PIT) 16,410f
- Additional council Tax (ACT) 10% of PIT
- Local Development Tax(LDT) 1,250f
- Land Bank Tax (LBT) 1% of Taxable salary
- Audio Visual Tax(AVT) 4550f
- National Social Insurance Fund (NSIF) 4,2% of Contribution Salary

The taxable salary and contribution salary are the same and equal to the gross salary of the worker.
Work required
i) Determine the basic salary and overtime earned (see appendix 1) (10 marks)
ii) Establish the pay slip no 222 issued to CYNDY for February 2020 (see appendix 1) (10 marks)

Notes by Ngwen Abienwi Cynthia BSc, PLET in Accounting Page 12