Before saving, spending, and borrowing, know how much money you earn, whether employed or a recipient of a grant or investment. Make it a point that you are comfortable in understanding what makes up your earnings.
It is necessary to assess your payslip from top to bottom and all the line items it consists of. The items reflected on your payslip may include:
(1) Gross salary, which is income before deductions
(2) Pension or provident fund deducted from the gross salary. This item is vital as it contributes toward retirement
(3) Tax. Pay As You Earn (PAYE) forms part of your deductions. It is essential to make sure it reflects on your payslip
(4) Medical aid contribution, another deduction from your gross salary
(5) The overtime line item varies monthly; it changes over time.
The final component on the payslip will be your nett income, which is the final amount that will be transferred to your bank account.
It is crucial to understand how your income is made up. It will make things easier in navigating your financial life.
– Sibusiso is a professional in the financial services sector in Carletonville.
