06/03/2017
DID YOU KNOW?
Early 2016 i reckoned how the devaluation of SSP against dollar would affect staff remuneration, especially those whose salaries were in USD, and those whose salaries were in SSP but net pay/take home get converted into USD.
I mentioned that, for the former and latter,
Firstly, the government/Directorate of Taxation should have raised the tax free bracket/threshold of 300SSP to at least more than 700 SSP, and also raise the tax at 10% and 15% to reflect the floating/devaluated SSP against Dollars effective that month.
Secondly, INGOs and other institutions that contracted staffs in SSP and then disburse their netpay/take home in USD must at least ensure that, from that effect they think very proactivelly to amend staffs contract from SSP into USD using the then old flat rate(2.9 that time) to ensure it reflects the devaluation ordeal so that from that effect salaries could be processed in USD as per the contracts and stil taxes be computed in SSP..... or amend staff salaries by increasing/multiplying at the actual inflated SSP to reflect their gross income....
Reflecting the reality above now, the exchange rate has since then rocketed from 1,800SSP from January 2016 to now 10,100SSP i think as of February 2017.. meaning, staff who were contracted in SSP and net pays disburse to them in USD by then would be getting zero pennies by now.....
Currently due to the inflations of SSP against USD, tax free bracket has been raised from 300SSP to 600SSP, and income tax at 10% and 15% hasn't changed at all....do you know that it just changes difference of may be 2$ or even nothing....? The tax bracket at 15% for income above 5000 monthly increases as th e inflation goes higher hence decrease in net pays of staffs...DO YOU KNOW THAT?
So, as long as inflations rises, the reflection above remains absolute truth...
Lagu Peter Venusto - HR/Admin - MBA, BHR
