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Using current exchange rates and TCPL limits
Example 1 - ZiG Payroll (where basic exceeds the NSSA Limit)
Basic |
ZiG 64 500.00 (1) |
NSSA Limit |
USD700 multiplied by the inter-bank rate applicable on the day of processing (2) |
NSSA Rate |
4.5% (3) |
NSSA Deduction |
= ((2) above) * ((3) above) * 4.5% |
Example 2 - ZiG Payroll (where basic is less than the NSSA Limit but the employee also receives regular allowance/s less than basic)
If the allowance is less than Basic, then only the basic is included in the computation.
Basic |
ZiG 4 000.00 (1) |
NSSA Limit |
USD700 multiplied by the inter-bank rate applicable on the day of processing (2) - Example ZiG 9657.34 |
NSSA Rate |
4.5% (3) |
Regular Allowance/s |
ZiG 2 500.00 (4) |
NSSA Deduction |
Since Basic ((1) above) is lower than the NSSA Limit ((2) above) the Allowances are not included in the calculation: Basic ((1) above) * NSSA Rate ((3) above) *4.5% = 180.00 |
Note |
In this example only the Basic is taken into account despite receiving Allowances. This is because the Allowances ((4) above) are lower then the Basic amount. If the Allowances were higher than Basic then the calculations would include the Allowances. |
Example 3 - ZiG Payroll (where basic is less than the NSSA Limit but the employee also receives regular allowance/s greater than or equal to the basic)
If the allowance is greater than or equal to the Basic, then it is included in the computation.
Basic |
ZiG 4 000.00 (1) |
NSSA Limit |
USD700 multiplied by the inter-bank rate applicable on the day of processing (2) - Example ZiG 9657.34 |
NSSA Rate |
4.5% (3) |
Regular Allowance/s |
ZiG 6 500.00 (4) |
NSSA Deduction |
Since the Allowances ((4) above) are higher than the Basic ((1) above) they are included in the calculation: [(Basic (1) above) + (Allowances (4) above)] * NSSA rate (3) above) = [(4000.00 + 6 500.00 = 10 500] (limited to to 9657.34 (2) above) * 4.5% = 434.58 |
Note |
The Basic plus allowance is taken into account and limited to the Period limit , meaning that NSSA will only calculate from USD700 multiplied by the inter-bank rate applicable on the day of processing |
Example 4 - USD Payroll (where Basic is lower than the NSSA Limit and Allowances are lower than Basic)
Basic - USD |
USD 405.00 (1) |
NSSA Limit |
USD 700 (2)) |
NSSA Rate |
4.5% (3) |
Regular Allowance/s |
USD 200.00 (4) |
NSSA Deduction |
Basic is lower than the USD700 limit ((2) above). Take the Basic ((1) above) * 4.5% = USD 18.23. Allowances are not considered since they are lower than Basic. |
Example 5 - USD Payroll (where Basic exceeds the NSSA Limit and Allowances are lower than Basic)
Basic - USD |
USD 1 405.00 (1) |
NSSA Limit |
USD 700 (2)) |
NSSA Rate |
4.5% (3) |
Regular Allowance/s |
USD 200.00 (4) |
NSSA Deduction |
Basic exceeds USD700 limit. Take NSSA Limit ((2) above) * 4.5% = USD 31.50. Allowances are not considered since they are lower than Basic. |
Example 6 - USD Payroll (where Basic is less than the NSSA Limit but the employee also receives Regular Allowance/s greater than or equal to the Basic)
If the allowance is greater than or equal to the Basic, then it is included in the computation.
Basic - USD |
USD 225.00 (1) |
NSSA Limit |
USD 700 (2) |
NSSA Rate |
4.5% (3) |
Regular Allowance/s |
USD 500.00 (4) |
NSSA Deduction |
Basic is lower than the USD700 limit ((2) above) but since the Allowances ((4) above) are higher than Basic the two figures are added together. Basic ((1) above) + Allowances ((4) above) = USD225.00 + USD500.00 = USD 725.00. This exceeds the NSSA Limit so take the maximum amount of the NSSA Limit ((3) above) * 4.5% = USD 31.50 |
Example 7 - Multi Currency Payroll (where the ZiG plus USD basic does not exceed the NSSA Limit and the Regular Allowances do not exceed the combined basic)
Basic - USD |
USD 70.00 (1) |
Basic - ZiG |
ZiG 4500.00 (1a) (example: USD326.17) |
NSSA Limit |
USD 700 (2)) |
NSSA Rate |
4.5% (3) |
Regular Allowance/s |
USD 75.00 (4) and ZiG 1350.00 (4a) |
Total NSSA Deduction |
((1) + (1a) / divided by the inter-bank rate applicable on the day of processing) * 4.5% = (70 + 326.17) *4.5% = 17.82 (5) |
Payment split by currency |
Total Basic = ((1) + (1a) / divided by the inter-bank rate applicable on the day of processing) (6) (example 70 + 326.17 = 396.17) Amount payable in USD: (5) * (1) / (6) (example 17.82 * 70 / 396.17 = 3.14) (7) Amount payable in ZiG: ((5) - (7)) * inter-bank rate applicable on the day of processing (example : (17.82 - 3.14) = 14.68 * inter-bank rate applicable on the day of processing = ZiG 202.53) |
Note |
In this case the Regular Allowances did not exceed the combined value of Basic and were therefore not included in the calculation.. |
Example 8 - Multi Currency Payroll (where Regular Allowances are greater then the combined basic amount and together they are less than the NSSA Limit
Basic - USD |
USD 70.00 (1) |
Basic - ZiG |
ZiG 2500.00 (1a) (example: USD181.20) |
NSSA Limit |
USD 700 (2)) |
NSSA Rate |
4.5% (3) |
Regular Allowance/s |
USD 75.00 (4) and ZiG 1350.00 (example: USD97.85)(4a) |
Total NSSA Deduction |
((1) + (4) + ((1a) + (4a)) / divided by the inter-bank rate applicable on the day of processing) * 4.5% = (70 + 75 + 181.2 + 97.85) *4.5% = 16.96 (5) |
Payment split by currency |
Total Basic + Allowances = ((1) + (4)) + (1a) + 4a / divided by the inter-bank rate applicable on the day of processing) (6) (example 70 + 75 + 181.20 + 97.85 = 424.05) Amount payable in USD: (5) * ((1) +(4) / (6) (example 16.96 * 70 + 75 / 424.05 = 5.80) (7) Amount payable in ZiG: ((5) - (7)) * inter-bank rate applicable on the day of processing (example : (17.82 - 3.14) = 14.68 * inter-bank rate applicable on the day of processing = ZiG 154.00) |
Note |
In this case the Regular Allowances exceeded the combined value of Basic and were therefore included in the calculation. |
Example 9 - Multi Currency Payroll (where Regular Allowances are greater then the combined basic amount and together they exceed the NSSA Limit
Basic - USD |
USD 70.00 (1) |
Basic - ZiG |
ZiG 4500.00 (1a) (example: USD326.17) |
NSSA Limit |
USD 700 (2)) |
NSSA Rate |
4.5% (3) |
Regular Allowance/s |
USD 275.00 (4) and ZiG 1350.00 (example: USD97.85)(4a) |
Total NSSA Deduction |
((1) + (4) + ((1a) + (4a)) / divided by the inter-bank rate applicable on the day of processing) = example (70 + 275 + 326.17 + 97.85) = 769.02. This exceeds the NSSA limit of USD700. The deduction is therefore USD700 * 4.5% = USD31.50 (5) |
Payment split by currency |
Total Basic + Allowances = ((1) + (4)) + (1a) + 4a / divided by the inter-bank rate applicable on the day of processing) (6) (example 70 + 75 + 181.20 + 97.85 = 769.02) Amount payable in USD: (5) * ((1) +(4) / (6) (example 31.50 * (70 + 275) / 769.02 = 14.13) (7) Amount payable in ZiG: ((5) - (7)) * inter-bank rate applicable on the day of processing (example : (31.50 - 14.13) = 17.37 * inter-bank rate applicable on the day of processing = ZiG 239.63) |
Note |
In this case the Regular Allowances exceeded the combined value of Basic and were therefore included in the calculation. |