To calculate the full wage, we include the following –
– Overtime that is of a regular nature.
– Bonuses of a regular nature e.g. Annual Bonus.
– Commission of a regular nature.
– The cash value of food and quarters provided to employees as part of their remuneration package.
– Cash value of fringe benefits – company car, accommodation, reduced rates etc.
– Gross Earnings
– Earnings / Drawings paid to working Directors of a Company or Members of a Close Corporation.
The following is excluded –
– Payments of a reimbursement nature.
– Occasional Overtime.
– Ex-Gratia payments.
– Intangible fringe benefits such as the taxable portion of employer contributions to medical aid / pension etc.
– Payments to cover special expenses such as subsistence and travel costs, lunches etc.
– Travel and other occasional allowance.
– If a Director / Member’s only remuneration is profit sharing, the Director / Member is not an employee in terms of The COID Act.