Ato Melaku is a Loan officer at Dashen Bank, Determine the TEI of Ato Melaku if his monthly salary of 5,000 is for 176 normal working hours, He worked 186 hours the employment is contribution to provident find in 20 % of Melaku is Basic salary.
To determine the Total Employment Income (TEI) of Ato Melaku, we need to calculate various components of his salary.
1. Basic Salary:
The monthly basic salary of Ato Melaku is 5,000.
2. Overtime Salary:
Ato Melaku worked 186 hours, which is 10 hours more than the normal working hours of 176. We need to calculate the overtime salary for these extra hours.
Overtime rate per hour = Basic Salary / Normal working hours
Overtime rate per hour = 5,000 / 176
Overtime rate per hour ≈ 28.41
Overtime Salary = Overtime rate per hour x Overtime hours
Overtime Salary = 28.41 x 10
Overtime Salary ≈ 284.1
3. Contribution to Provident Fund:
Melaku's provident fund contribution is 20% of his Basic Salary.
Contribution to Provident Fund = 0.2 x Basic Salary
Contribution to Provident Fund = 0.2 x 5,000
Contribution to Provident Fund = 1,000
TEI (Total Employment Income) = Basic Salary + Overtime Salary + Contribution to Provident Fund
TEI = 5,000 + 284.1 + 1,000
TEI ≈ 6,284.1
The Total Employment Income (TEI) of Ato Melaku is approximately 6,284.1 Ethiopian birr.
To determine the Total Employment Income (TEI) of Ato Melaku, we need to consider his monthly salary, the number of hours he worked, and the contribution to the provident fund.
1. Let's start by calculating Ato Melaku's hourly rate:
Hourly Rate = Monthly Salary / Normal Working Hours
Hourly Rate = 5,000 / 176
Hourly Rate ≈ 28.41
2. Next, we need to determine the contribution to the provident fund:
Contribution to Provident Fund = Basic Salary * 20%
Contribution to Provident Fund = Monthly Salary * 20%
Contribution to Provident Fund = 5,000 * 20% = 1,000
3. Now, we can calculate Ato Melaku's total income, including the provident fund contribution for the additional hours worked:
TEI = (Hourly Rate * Normal Working Hours) + (Hourly Rate * Overtime Hours) + Contribution to Provident Fund
TEI = (28.41 * 176) + (28.41 * 10) + 1,000
TEI ≈ 5,363.16 + 284.1 + 1,000
TEI ≈ 6,647.26
Therefore, the Total Employment Income (TEI) of Ato Melaku is approximately 6,647.26.