Every month when you get your salary, you will probably receive a payslip that shows on your total income and different types of deductions. Sometimes it is also called a "pay stub" or "earnings guidance" So when you see these terms, you should know that they refer to the same thing.
There are many sites that provide free pay stub apps, you can also take reference from those sites. whatever work you do, it is very important that you understand your payslip.
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To calculate your salary advice you should follow the following steps:
- First, you need to calculate your gross earnings. This is the amount of money you earn from your work, and all deductions are based on this amount. Although 99% of cases, there will be no error in the total amount you receive, it is better that you compare your own calculation with the amount you actually receive.
- The next step is to deduct voluntary deductions, which include benefits such as sponsored by your company. When you signed your contract with the company, you have agreed to these benefits. And that's why they are called "voluntary deductions." Common types of these benefits are retirement benefits, medical and dental care, life insurance, pay parking, etc.
- Finally, you must remember to deduct the statutory deductions, which bubble up petrol different types of taxes. You will have to pay tax health insurance, tax on social security, etc., and it is a good idea to learn about the tax rate and calculate the tax yourself.
- All steps are completed, you will reach the right amount of money you get each month. Compare that with the amount of the payslip. It is a good habit to develop.