Ato Samuel is head of Human resource department of BB family PLC, Assuming the following He gets a monthly salary of Br 10,640 for 176 normal working hours. He worked 186 hours during the month of sene 2014 and all overtime work is done from 6 : 0 0 A.M to 10 : 0 0 P.M He is entitled to receive a Transportation allowance 1/4 of the basic salary . Required : Determine the TEI of Ato Samuel
To determine the Total Earning Income (TEI) of Ato Samuel, we need to calculate his overtime pay and transportation allowance.
1. Overtime pay:
The normal working hours for the month of sene 2014 are 176 hours.
Ato Samuel worked 186 hours, which means he worked 186 - 176 = 10 hours of overtime.
Overtime pay is calculated as 1.5 times the regular hourly rate.
The regular hourly rate is the monthly salary divided by the normal working hours, so it is 10,640 / 176 = Br 60.45.
Therefore, the overtime pay for 10 hours is 10 * 1.5 * Br 60.45 = Br 907.5.
2. Transportation allowance:
The transportation allowance is calculated as 1/4 of the basic salary.
The basic salary is Br 10,640, so the transportation allowance is 1/4 * Br 10,640 = Br 2,660.
Now we can calculate the TEI:
TEI = Monthly salary + Overtime pay + Transportation allowance
TEI = Br 10,640 + Br 907.5 + Br 2,660 = Br 14,207.5
Therefore, the Total Earning Income (TEI) of Ato Samuel is Br 14,207.5.
To determine the TEI (Total Earnings and Incomes) of Ato Samuel, we need to calculate the following components:
1. Basic Salary: Given Ato Samuel's monthly salary of Br 10,640 for 176 normal working hours, we can calculate his hourly rate as:
Hourly Rate = Monthly Salary / Normal Working Hours
= 10,640 / 176
2. Overtime Payment: Ato Samuel worked 186 hours during the month, and since overtime work is done from 6:00 A.M to 10:00 P.M, we need to calculate the overtime payment for the extra hours:
Overtime Hours = Total Worked Hours - Normal Working Hours
= 186 - 176
Overtime Pay = Overtime Hours * Hourly Rate * 1.5
3. Transportation Allowance: Ato Samuel is entitled to receive a transportation allowance of 1/4 of his basic salary, which can be calculated as:
Transportation Allowance = Basic Salary * 1/4
4. TEI (Total Earnings and Incomes): The TEI can be calculated by summing up the basic salary, overtime pay, and transportation allowance:
TEI = Basic Salary + Overtime Pay + Transportation Allowance
By plugging in the calculated values, we can determine the TEI of Ato Samuel.