Lighton Phiri

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@36ada401386c4c846c6d9e0475e7426b:disqus Its better than nothing Its a step in the right direction.

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@55737a7f13c960ef20843f838be66cd0:disqus sorry I took long. No it does not mean that net pays will go up by 1m –the thresholds are not linear. The calculation is done in bands. It does, however, mean that your net pay will increase; the factor at which it will increase largely depends on your gross pay.
I hope this helps.

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@ac1560b3d94ef6c2b727e65a74f0cb71:disqus I’ve updated the post with a section that pretty much explains how they go about deducting your gross pay. They basically systematically deduct your gross pay in clusters after removing your NAPSA contributions. Let me know if the steps still don’t make sense –I’ve never been very good at explaining concepts :(I hope this helps.

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@pretty_woman:disqus Your net pay should be ZMK 3,167,000. I hope this helps.

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@CHILLZM:disqus Good to know you found the post helpful. See my comments below.

(1) As far as I know, in theory, the only time PAYE should go up is if either your employers gave you a salary increment or if get additional variable allowance… e.g. overtime or overnight allowance or something… these additional income streams would effectively increase your basic pay and thus your PAYE as well… my guess is you sometime get allowances and as far as my knowledge of Zambia goes, its mostly overtime…

(2) NAPSA employee contributions are financed at a standard rate of 5% [1]. However, you should note that this amount is deducted from your total basic salary before computation of PAYE.

What are your thoughts on this? Does this make any sense? Send me an email and I’ll help with the computations –I won’t tell anyone ;). I hope this helps.

[1] http://www.napsa.co.zm/index.php/features

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@46ce057b341a127167f11b277ed2fe04:disqus I would strongly suggest that you make a claim and apply for a tax refund for April, May and June 2012. However, you should not mistake PAYE for NAPSA deductions… NAPSA will still be deducted from the 1,500,000

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Hello there, working with the standard 5% NAPSA deduction, the breakdown is as follows. I hope this helps

Gross -> 4,360,000
NAPSA -> 218,000 [5% of gross]

Taxable Amount -> 4,142,000.00
PAYE -> 602,600.00
Total Tax Due -> 820,600.00
Net Income -> 3,539,400.00

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I am wondering how you got to find yourself here Lwele Still waiting for that phone call…

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It’s still income and so you would have to add it to the Basic Pay. The only strands you exclude are statutory contributions…

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@disqus_pCA7sIdJwm:disqus Terribly sorry for the delay. It appears I missed a lot of comments. You would need a basic of ZMW 9,113.46

Basic Pay ….. ZMW 9,113.46
NAPSA ……… ZMW 255.00
Tax …………… ZMW 1,865.46

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@disqus_BE70mgkf3R:disqus Missed your comment. Hope it’s NOT too late, but your Take Home, effective April 1 2014, is ZMW 4,261.5

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@silvestermbazima:disqus It’s actually the PF Government NOT ZRA ZRA is only there to implement policy

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Take Home ….. ZMW 2,854

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Net Pay ….. ZMW 7,244.25

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ZMW 7,244.25

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Net Income ….. ZMW 5,347.55

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PAYE ………….. ZMW 3,357.12

Net Income ….. ZMW 9,763.21

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Net Pay will be ZMW 1,903.65. The only deduction would be NAPSA contributions (ZMW 255.00)

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With that amount, your PAYE will be ZMW 11,290.45

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@disqus_5bIyqSfUn8:disqus Sorry for the delay… missed your comment.

NAPSA: ………. ZMW 255.00
PAYE Tax: ……. ZMW 86.25
Net Pay: ………. ZMW 3,345.00

I hope this helps.

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Mr Phiri say something about the kr255 .00 Napsa figure what percentage are you using to come up with that?

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@Wellington Bwalya:disqus
Missed your comment; with that amount, you are within the ‘Tax Free
Threshold’ and so the only deduction would come from NAPSA–ZMW 205.20.

Deduction/Month ………. ZMW 205.20
Net Pay/Month ………….. ZMW 1,162.80

To the best of my knowledge, gratuity conditions are company specific–I cannot help compute it without more details… I’d advise that you go through your contract to figure that out.

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@Kenneth KALUBA
Thank you for this. If I understand your concern, I believe I implicitly took that into account. That’s the reason I have the third field (Statutory Contributions). For instance, if say you make a monthly contribution to the Local Authorities Superannuation Fund and input that amount in that field, you should get the desired result(s). NAPSA is mandatory while these auxiliary contributions are optional and vary with different employers. Let me know if this does NOT give the desired result so we can work on it.

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MBwalya

NAPSA ………. ZMW 255.00
PAYE ………… ZMW 3,925.75
Net Income … ZMW 10,819.25

You could also experiment more with the PAYE calculator on the page. I hope this helps.

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@elianachishasiwila:disqus By law, yes. All cash benefits paid in the form of allowances are taxable.

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@joe Yes, you are correct, except for the 5% part—I am actually struggling to make out where the 5% is coming from.

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@Oliver According the latest ZRA practice note (No. 1/2014) [1], if the ZMW 29,800 is your qualifying gratuity, it will NOT be taxed and you should get that entire amount.

Use that money wisely brother ;^)

[1] http://goo.gl/f5spij

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@galamukani Your net pay will be ZMW 7,829.25. You can see a detailed breakdown of your gross income using the form in the post.

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Thank you very much but how do i access the breakdown calculations?

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Hello MR. @johnndhlovu:disqus ! A million thank you for this. I just updated the calculator to reflect the latest 2014 Ceilings [1].

With that basic salary, the computations would be as follows:
NAPSA …….. ZMW 792.05
NET ………… ZMW 19,905.58

If you could help confirm that these figures match with those on your payslip, I’d really appreciate it. Then I could make appropriate changes if required—I rarely get feedback from people using this calculator.

Thank you again.

[1] http://goo.gl/WgVk6W

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@Mwape Kangwa, You could use the form above Your breakdown is as follows

NAPSA …… ZMW 625
PAYE ……… ZMW 2,921.25
NET ……….. ZMW 8,953.75

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@maggie That gross amount falls within the tax exception band—see above. Using the form, you could easily extrapolate the values by multiplying by 12.

NAPSA ……….. ZMW 90 (YTD: ZMW 1,080)
Taxable ………. ZMW 1,710.00 (YTD: ZMW 20,520)
Take Home …. ZMW 1,710.00 (YTD: ZMW 20,520)

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@ozcchronicles:disqus Statutory deductions for all employees (local and otherwise) is done exactly the same way [1]—as above, unless if company expatriate will be working for is an international company.

You deduct 5% from empoyee, but remit 10% to NAPSA [2].

I am not very sure how earnings in foreign currency are handled, however, seeing as everything is quoted in ZMW on the NAPSA Website [3], I would imagine you would have to convert employee’s gross salary into its equivalent ZMW value before computing statutory deductions. That said, you would have to contact NAPSA to find out the specifics.

I hope this helps?

[1] http://goo.gl/mq5Xfi
[2] http://goo.gl/rdMl54
[3] http://www.napsa.co.zm

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@Jeff No, ZMW 3,000 is within tax exception band—anything less than ZMW 3k, after statutory contributions are deducted, is non-taxable.

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@rich The total maximum NAPSA contribution is ZMW 1,584.10, with employee and employer split up contribution evenly; implying that an employee is currently required to pay up to a maximum of ZMW ZMW 792.05.

Please see this [1] memorandum for details.

[1] http://goo.gl/WgVk6W

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Glad it all makes sense now.

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Hello @mr michael… Tax is computed in bands; that taxable amount (ZMW 9,975) is broken down and appropriate deductions made to applicable bands. Here is how…

STEP#1: 3000@ 0% (ZMW 0 tax) leaving 6975
STEP#2: 799,99 (3000.01 to 3800.00)@ 25% (ZMW 200 tax) leaving 6175.01
STEP#3: 2099.99 (3800.01 to 5900.00)@ 30% (ZMW 630 tax) leaving 4075.02
STEP#4: 4075.02@ 35% (ZMW 1426.26)

Total tax: (200 + 630 + 1426.26) => ZMW 2256.26

I hope this helps.