TVANVIN qMndaOUdd TIOUAVd3, PAYROLL PROCEDURE MANUAL 3.1, APPOINTMENTS Buta Salary Register salary section of line ministries must keep a salary register in eect oe ns i aaah be ere numerical order. Pages of the salary register must be kept articular register, and shall sign and date the advice, He or she shail also Cé him/herself that the calculations that had to be made are correct. 3.1.2. Personnel Advice ‘The salary office must verify whether the following information appears On the advice a) PERSONAL DETAILS + Salary reference number + Tite Correct Name & Surname Valid Namibian ID number Date of Birth Gender Marital Status Number of Dependants Tax number Nationality (To determine whether employee is a Namibian or 2 foreigner) + Means of payment - Cheque = Cash Electronic (Complete Bank detalis; Branch, Branch code, account) Name of Bank, Account number and Type of b) EMPLOYMENT DETAILS + Date of appointment + Nature of appointment + Rank, scale and notch3.2 33 + Incremental date 2 Bonus indicator Employment level (Political Office Bearers Hnagament Cadre and Other sa member) 2S + Pay Point «+ Pension indicator and group ‘+ Pension admittance date ALLOWANCES: (See attached Annexi Stowancasy’ mre AK Gf approved Allowances are determined and approved by the Pubic Service Commission and is regulated and pald according to the Public Service Staff Rules. In cases where a staff member qualifies for any alowance, the relevant personnel office must issue 2 personnel advice on which the period oF time is indicated and relevant allowance. A complete code Ceucture exists within the computer system to be used for the payment of STlowances to staff members. If no allowance code exists In the computer System, celery offices should request such 2 code from the system aaernttrator ot the Ministry of Finance. The request should be supported 3th the relevant authorisation and details as approved by the PS.C. DEDUCTIONS STOP ORDERS AND PAYING OVER OF SALARY DEDUCTIONS: by virtue of the stop order system 2 staff member may NS his/her By rena offcer to. deduct monthly amounts from hisher soary fo purposes approved beforehand by the Treasury and tothe credit Br gpecifc beneficiaries. The Accountant Gener! “Pes corsieratien oF che conditions, which the Treasury lid down In fs regard, grant order facilities (Deduction code). Accounting Officers shall see to It tat all Samet! and nana ecpetions fom selares are paid to the minsn® or organs cee aethed within the prescribed period oF 25 $007 9S poss Sad of the month in which the deductions were made. onestatutory: Deductions are classified into two categories statutory and 0 com nets afore a deduction code can be resstered In Ne 2 TS Before @ oved by the Office of the Accountant Gene ‘‘+ Incremental date + Bonus indicator + Employment level (Poltical Office Bearers {PORG}, Management Cadre and Other staff members) + Pay Point | + Pension indicator and group Pension admittance date 3.2. ALLOWANCES: (See attached Annexure allowances.) ‘ A of approved Allowances are determined and approved by the Public Service Commission and Is regulated and paid according to the Public Service Staff Rules, In cases where @ staff member qualifies for any allowance, the relevant personnel office must issue @ personnel advice on wich the period of time is indicated and relevant allowance. A complete code structure exists within the computer system to be used for the payment allowances to staff members, If no allowance code exists in the computer system, salary offices should request such a code from the system ‘administrator at the Ministry of Finance. The request should be supported with the relevant authorisation and detalls as approved by the PS.C, 3.3. DEDUCTIONS 3.3.1. STOP ORDERS AND PAYING OVER OF SALARY DEDUCTIONS: By virtue o f the stop order system @ staff member may request his/her accounting officer to deduct monthly amounts from his/her salary for Durposes approved beforehand by the Treasury and to the credit of specific beneficiaries. The Accountant General upon consideration of the conditions, which the Treasury laid down in this regard, grants step crder facilties (Deduction code). ‘Accounting Officers shall see to it that all statutory and nonrstatutory deductions from salaries are paid to the ministries or organizations Concerned within the prescribed period or as soon as possiale after the tend of the month in which the deductions were made. + Deductions are ries, statutory and non-statutony sified into two c Before a deduction code can be registered in the payroll $y be approved by the Office of the Accountant Genera!deduction code is not only registered in the payroll system but that it also ected in the general ledger (vote or suspense account code) 3.3.2 STATUTORY DEDUCTIONS: Pension (See attached Annexure B) - Membership A staff member qualifies to be a member of the Pension Fund (GIPF) if he/she is permanently employed as stipulated in Section 5 of the Public Service, Act.13 of 1995, Membership fee is automatically deducted as from the 1* day of employment. -Contribution ‘An ordinary member of the GIPF contributes 7% of his/her basic salary towards the fund es employee's contribution. (Refer to Pension Indicator as mentioned In “Employment Details") A deduction code for pension contribution is registered within the computer system. Monthly deductions are automatically effected where after cheques and reconcllation reports are generated, Poltical Office Bearers contribute 10%6 of their basic salary towards the Pension Fund (GIPF) Ministries contribute 16% on behalf of the employer (GRN) ‘meaning, for every doliar that the member contributes the Government Service contributes 16% or N$ 2.286 (16% divided by 7% = NS2.286). Poltical Office Bearers however Contribute 10% and the Government 25% or N§2.5 for every dollar that @ member contributes. Salary Offices must however compute the employer's contribution as explained above. Both contributions must be paid over the Pension fund on or before the deadline as pres fund on or b prescribed by the fund Tax (See attached Annexure i Tax (See € for different tax Income Tax must be computed as determi Computed as determined by the Inland Revenue as per Income Tax Act. 1981, deduction code for 'ax deduction is registered within the computer system pe Mmmamrercr Poo is.Monthly deductions are automaticall tutomatically effected whe cheques and. reconcliton repors ae seat Payment must be paid over to the Ministry of tinantl® Inland Revenue Directorate. _ ane Social Security Social Security deductions are compulsory and applicable to permanent as well as temporary staff members. The contribution is computed a5 .09% of the basic salary however if a staff member earns more than N§3000.00 2 month, the membership fee will not be more than N$27.00 ‘The employer's contribution is computed for every NS1.00 the employee contributes; the Government Service” also contributes N$1.00. A deduction code for Social security deduction is registered within the computer system. Salary Offices must however compute the employer's contribution as explained above. Monthly deductions are automatically effected where after cheques and reconciliation reports are generated. Both contributions must be paid over the Social Security Commission on or before the deacline as prescribed by the fund Administrator Medical Aid The Medical Aid Scheme is voluntary and staff members can apply to become members. 1e_ Human Resource Department is responsible to inform the Salary Office by way of 2 copy of the Medical Aid application form. | “he membership fees are N$60.00 for a memizer, and NS3C.00 for every dependant registered under a member‘s name per month. A deduction code for Medical Aid deduction is registered within the computer system. The membership contributions are registered as non-taxable Revewe (administrative fees) under the Ministry of Finance. No Cheque will be generated by the system for the contributory fas the contribution Is automaticaly crecited ageins' specific Revenue heading,Monthly deductions are automaticalh cheques and reconciliation Prine payment must be paid o Inland Revenue Directorate, Social Security Social Security deductions are compulsor Permanent 25 viell as temporay set mere? contribution is computed as .09% of the basic salary however if a staff member earns more than N$3000.00 month, the membership fee will not be more than N&27.00, ‘The employer's contribution is computed for every N$1,00 the employee contributes; the Government Service also contributes N§1.00, A deduction code for Social security deduction is registered within the computer system, Salary Offices must however compute the employers contibution a5 explained above. Monthly deductions are automaticaly effected where after cheques and reconciliation reports are generated, Both contributions must be paid over the Social ‘Security Commission on or before the deadline as prescribed by the fund Administrator Medical Aid ‘The Medical Aid Scheme is voluntary and staff members can apply to become members, The Human Resource Department is responsible to inform the Salary Office by way of @ copy of the Medical Aid application form, The membership fees are N§60.00 for a member, and N$30.00 for every dependant registered under a member's name per month, A deduction code for Medical Aid deduction is registered within the computer system. The membership contributions are registered a5 nontaxable Revenue (administrative fees) under the Ministry of Finance. No cheque will be generated by the system for the contributon, as the contribution [5 automatically credited against the specific Revenue heading+ Court Orders Refer to detailed document included as Annexurt that a deduction code needs to be granted to the Law firm = the application must be forwarded to the office of the Accountant General, + Rental of Government Houses a) Salary pay sheets i.r.0. deductions for the rental of official housing should be provided to works to be reconciled against the list of allocations of Government houses to employees. A deduction for Official House Rent is effected from the salary of @ staff member who resides in @ Government owned house, The tariffs are pre- determined by the Public Service Commission as per Public Service Management Circular. However, these deductions have tax implications as explained in the above-mentioned annexure, 3.3.2. PAYROLL DEDUCTION MANAGEMENT SYSTEM (PDMS) «INTRODUCTION The function of 2 payroll Is to calculate the Individual Staff member's salary or pay and to produce the relevant documentation Ike pay slips and Ghaques. Its not the role of a payroll to manage the voluntary deductions Gr non statutory deductions of staff members. Voluntary deductions Currently being accommodated on the payroll are: Insurance (Shors term ‘nd long term), Micro Lending and Education Faclitetors Over the years the Government has allowed the daductions of voluntary Seuctone off the payroll to help and support employees. This allowed those staff members without bank accounts to also share in the services her services. out the costs dnd privileges of Life Insurance, Insurance, Housing 2n¢ Government staff members got access to these services » Usually involved with operating a bank account. transactions has however increased over me and The volume of these re i fang put under considerable financial stress Cue to some employees ere these deductions.In an effort to help its staff members the Government implement a cerice ta support and manage these Socucion co control the deductions being submitted to the payroll. In 2002 mesa was awarded to Avril Payment Solutions (Pty) Ltd (APS) to sade wet control and management service for the Government payroll Gone Bs only provides the service and related computer system out A9S ros ra jurisdiction to decide on any of the rules that govern the allonatls deductions and affordablity criteria that was set. meeess ‘The Ministry of Finance in conjunction with other parties like NAMFISA ang the Office of the Attorney General set up a set of rules and regulations that governs this service, - DEDUCTION CODE HOLDERS MUST ATTEND TO QUERIES FROM STAFF MEMBERS (PROVIDE CLEINT SERVICES) AND RELEASE ‘THE PERSONNEL OFFICE FOR MORE IMPORTANT BUSINESS ‘Through this process it also released the Government of @ significant burdan zo assist staff members with enquiries that should have been handled by the different Deduction Code Holders. The Deduction Code Holder must handle the support of queries related to deductions on the Government payroll submitted via POMS. For this purpose @ contact list is included in this booklet. | WHO ARE THE ROLE PLAYERS? There are a number of role players and we will define the roles o member, the Personnel Office (PO) the Deduction Code Holder ( Ministry of Finance (MOF) and APS. 12 Staff be ‘The Staff Member is stil the centre character since itis the Staff member vino ples for insurance, a loan or other service, The staff member reecs to cEinpiete an Application form and sign a stop order. The Insurance Company oF [ender will then check the affordability of the deduction via PDMS. If “he deduction Is affordable according to the rvies and regulations as approved by ‘he famistry of Finance the service will then be rendered. It is the responsibilty of the DCH, in this case the Insurance Company or Lender, to acd the ded Doms onto the payroll. Itis also the responsiblity of the OCH to inform crper should this transaction not be affordable. Alternative methods of Gavment may be considered by the DCH, out tthe DCH company policy in is tegard that becomes applicableWhen deductions terminate, it is the responsiblity of the DCH to stop the eduction or to change the amount, whichever the case may be. To stop a deduction should not take more than one pay run. Ifa staff member's salary number changes, its his her responsibility to notify all DCH, who has deductions on their pay slip, of thelr new salary numbers. Failure to report a change in a salary numiber may result in the staff memioer not being ‘le to claim benefit on an in Insurance policy as non payment may result in the termination of the policy contract. Non-payment of loans may also result in legal action being taken against a staff member. ‘The DCH cannot recover arrears via PMDS and employees must contact their DCH to pay arrears in cash or to make arrangements. STAFF MEMBERS WHOSE SALARY NUMBERS HAVE CHANGED MUST INFORM THE DEDUCTIONS CODE HOLDERS WHO HAS DEDUCTIONS ON THEIR PAY SLIPS. «ROLE OF MINISTRY OF FINANCE “The Role of the Ministry of Finance is to police the PDMS; the DCHs and APS to qrbke sure all transactions are done according tothe rules tat were set uP» MOF may also, at their discretion, review and change rules to ens fs the SoSt interest of the staff members. MOF also consider requests for Deduction facilities in terms of the State Finance Act and Treatsry Instructions and is under ‘biligation to grant Deduction facilities to any Institutions. R-THE DEDUCTIONS CODE HOLDERS RULES FO MOF MAKES OU EY STICK TO THE RULES: [AND MAKE SURE TH! r « power to temporarily or permanent suspend or esti 2 wok aso hae Pot ef aps ve = FON en 8 responsible, legal and fair way to the staff members. Jor on exceptional cases, complaints and osher statistics that APS reports to It ‘the PDMS. aliows MOF to effectively manageROLE OF THE PERSONNEL OFFICE ‘The Personnel Office does n erson jot have to sign stop orders any more, Pay slips ne ver {moran since the getails of the deductions are not ialabie inthe Ay More. The retenti ne ae ever any he retention of the pay slips by employees is of the ‘STAFF MEMBERS RETAIN THEIR PAY SLIPS IN A SAFE PLACE The Personnel office must be able to ex h plain the affordability rule and must Girect the staff member to the correct DCH contact as per attached list Personnel offices must make sure that they have the latest contact lists. APS will Gistribute the lists at least every 6 months. Additional lists can be requested from APS and is also avallable electronically, Personnel office must provide information to DCH on staff members who have resigned or whose services have been terminated. This information must be provided to the DCH when enquiries in this regard are received, PO's must also have the DCH with any information that may lead to the tracing of "missing” staff members (missing staff members refers to staff members who have disappeared from the payroll. © ROLE OF DEDUCTION CODE HOLDERS AND APS The Deduction Code Holders (DCH) is now in full control of their deductions as authorized by the staff members. DCH can via PDMS add, change and delete on ‘authorized deductions and integrate It into their current systems to improve their service to staff members. DCH cannot access any sensitive data regarding a staff member. Even an affordability check will only result in accept or decline and will never reveal a salary, other deductions or sensitive information. STAFF MEMBEF’S PRIVACY IS RESPECTED AND PROTECTED. NO PRIVATE OR SALARY INFORMATION IS REVEALED TO DEDUCTION CODE HOLDERS [APS is tasked with the integrity and confidentiality of the information.‘They are subject to the Jurisdicton of the Attomey General and must fully Tinply with all requirements to privacy and data protection as implemented in the Government of Namibia. High emphasis is placed on physical and virtual security. DCH must provide services to thelr clients and must ensure that they enable thelr clients to make informed financial decisions for example: if a client wants to stop his or her insurance policy, what are the consequences of the decisions, etc. * AFFORDABILITY CALCULATIONS ‘One of the most Important rules that the MOF has implemented is the Affordability rule. The aim of this rule is to manage the amount of deductions that will be allowed by the PDMS. This does not mean that staff members may not utilize more of their salary for these types of services. It only means that if a staff member wants to deduct more, he must arrange other means like a bank deduction or cash. THE PURPOSE OF THE AFFORDABILITY RULE IS TO PROTECT THE STAFF MEMBER AGAINS EXPLOITATION The affordability rules states that an employee must take a home, the bigger of, N$750 or 35% of basic salary plus recurring allowances. As an exampie: Mr X wants to take out a life insurance policy. As part of his application process the Insurance Company will check if the deduction willbe allowed by MOF. The amount of the new insurance deduction is N§200. ‘The affordability is calculated as follow: Mr X earns a basic salary of N$3500 and he receives a recurring rent allowance of N$500._He has deductions including tax, social security and other deductions totalling Ng2000, in this Of this N$4 000 Mr X must take home 35% which Is equal to N§1 400 case N$1 400 is bigger than N$750) Basic Salary 1Ng3 500 Plus Rent Allowance + N§_ 500 Minus Current Deductions - _N$2.000 Minus Take home pay - Ng1 400 Available for new deductions N§_ 600 ‘There is enough available to allow the N§200 deduction.AFFORDABILITY RULE: A STAFF MEMBER MUST TAKE HOME, z Bi THE BIGGER OF, N$750 OR 35% OF BASIC SALARY PLUS RECURRING ALLOWANCES. ALL VOLUNTARY DEDUCTIONS THAT EXISTED ON THE PAYROLL PRIOR TO MAY 2003 WERE INCLUDED IN THE TAKE HOME DATA, 3.3.4 IRRESPECTIVE OF THE AFFORDABILITY RULE OTHER DEDUCTIONS a) Trade Unions Membership contributions to a trade union approved by the Public Service Commission can be effected from 2 staff member's salary. b) Ministerial Revenue “These deductions are registered 2s non-taxable Revers’ (acministrative fees) under the | relevant ministries. (eduction codes are registered within the computer system ©) Board and Lodging ‘These deductions are meant for staf members who are ith and reside In the oe homes that belong to the Ministry of Health. These employed by the Ministry of He fre fixed amounts that cater for ~ a) Parking, Mess Fees, Social Club and Private Telephone -these deductions are effected form salarss of saff TMembers who contribute or utilze OTA facilities Tithin line ministries, however, Mess Fees are only able the Namibian Defence and THE Namitian Police Forces.®) Housing Housing deductions are made in favour of Institutions, Various deduction codes for Housing are registered within the computer system. Monthly deductions are automatically effected where after cheques and reconciliation reports are generated, These payments must be paid over to various institutions to recover monthly instalments due by staff members ‘The folowing type of housing deductions exist: ~ Low Cost Housing (Build Together) The Ministry of Regional Local Government & Rural Development grants low cost loans to the lower income groups to build houses through the Bult Together Scheme. Deduction codes for Lecal Authorities are registered within the computer system. Monthly deductions are automatically effected where after cheques and reconciliation reports are generated. These oayments must be paid over to the various Local Authortles to recover monthly instalments due by the sta members. - Housing Loans (See attached annexure £) Housing Loan deductions are effected from salaries of Staff members who participated In the Government Housing Scheme and recelve a monthly housing Subsidy or allowance. Housing deductions for managers have a tax implication that is dete-mined by the actual bond repayment ore Ministerial Debt Ministerial Debt is monies owed t member the govern: t by staff + All Ministerial Debt must be recovered for @ staff members salary in monthly instalments as cect to ejection Suspen t (see details of recovery of due i) the: manual for accounts payable Par * the S|Salary ove 7 "Y overpayments (See attached annexure Salary overpayments are debts that resuited ‘overpayments on salaries or allowances and nave tax implication, oS - Salary Advance (Refer to Sal: Salary Aa alary Advance Daily Subsistence and Travel Allowance (DSA) DSA deductions are effected from staff member's salaries to recover outstanding advances, Leave without Pay/Suspension (See attached Annexure H) - Fines Fines are monies that resulted from penalties imposed e.g, Misconduct, miltary court cases et. that must be deducted from 2 staff members’ salary. 4, PAYMENT EXECUTION 44 Printing of cheques ‘The Ministry of Finance prints all salary related cheques eg. month-end and supplementary payments. Month-end eaymerts can either be pald electronically or by cheque. 4.2 ELECTRONIC BANKING OF GOVERNMENT SALARIES + BACKGROUND ‘The Ministry of Finance and FNS Namibia entered into an agreement for the development of an electronic banking system salary payments and since June 1998 the Officials have been paid into t ts by means electronic transfers.schedul ‘The new system has done away with the paper n TSaues thet each month had to be distributed to the Va"I0 s banks. scone banking NOTE: Namibia Post is not part of the electiont. Os! Noter and deposi sts and cheques should be dealt with In the normal manner. epost lists for the various banks are stil printed by = salary system for information purposes. Cheques and lst should be forwarded to Nampost at least, 5 wworting days before pay dete to allow for the capturing of the Information. * PROCEDURES + FRONT AND LOAD REPORT REJECTIONS: ‘a. Definition: Upfront Rejection: Payment of staff member's salary rejected by salary system (The staff member's name will appear on the deposit ist with an entry e.g. Banking Institution unknown), Definition: Load Report Rejectlor ‘The information of the salary system is known loaded to F.N.B's file ~ the file rejects the entry due to Invalid account number, branch code, unknown institution etc. b. Upfront and. Load report rejection lists are made avallable to Ministries prior to payday (before 10” of each month). Process payment for the staff member concerned on the Funds Control System (F.C.S.) and charge expenditure to the ministerial rejection account. Process payments well in advance to ensure that the staff member does receive his salary in time. (Please note that the cheques processed on the F.CS. system will have a current date and those cheques should not be distributed until payday). FN. will forward the total amount for the rejections to the Ministry of Finance (Section Electronic Banking) by the 15" of each month.A journal entry wil A Jura entry ls past by he My the various rejection accounts ana break forwarded to all mi ra as for the reconciliation of the Seman spre ncaa, Hine ema repose control shouldbe exercised overpayments 2 etetore st iStY of Fane cour down of ean ries concerned. Mins Rectify salary system immediately with cortect banking deta ing detals of each individual to ensure thi ah ny iat payment are correct on the next SALARY RECALL, a f Compete slay recals requests form ( cn (fom att forwarded to Misty of rane Gero Sngh So ok ogee em a ir ane Under no circumstances may a salary recall request be forwarded directly to banking institutions as this creates problems and duplications. process payments for those recalls where payment is stil due o7 the ECS system and debit expenditure to rejection account. process payment well in advance to ensure staff member recewes his salary on payday. peter to Par, 2d forthe amount to be returned and recndied STAFF MEMBER'S RESPONSIBILITY a pease inform staff members in your Ministry of he folowing «Change in bank account detals should be reported to the Sersonnel office and selary office 3s soon Posse ae meeseMmember must leave 2 forwarding account Tur rat nc were he losedfchanged his acount43 SALARY NOT DEPOSIT INTO BANK ACCOUNT DUE TO CLOSURE/CHANGE OF ACCOUNT 2. Salary office receive Inquiry «+ Determine reason for non payment (Check upfront rejection list, salary recalls). + Confirm bank account closed/changed and that no payment has been made with bank concemed, + Confirm no deposit received on new bank account. + Confirm that bank has not put a “hold” on the account. b. Process payment on F.CS. system and charge expenditure to rejection account. CAUTION: Double payments might occur, please use caution before authorising the above-mentioned payments. Reconciliation of payments and amounts returned should be done as soon as the lists ag referred to In par.2d are received. Over payments should be re-covered Immediately! cc. _Rectty salary system Immediately with correct banking detalls. HELPDESK ‘A helpdesk has been set up at the Ministry of Finance to assist Ministries with enquiries. At no time will an enquiry receive attention if received directly form @ Staff member. Staff member are requested not to come to our Offices to make their personal enquiries, Salary Offices of Ministries should respond to thelr Staff member's enquirles as soon as possible. Names and telephone numbers of contact persons will be forwarded to Line Ministries from time to time. Cash Payments ‘Some staff members work in remote areas where they do not have access to commercial banks, Such staff members receive their salary in the following manner: + A cheque Is printed in the name of the supervisor/responsible person approved by the Accounting Officer; ae44 51 bt at na Pl ep ome any vembat {2 Staff mem Me Of reciplent Sheet with details ater "70! over cash payments Coltection and Distritution All cheques and "eports are printed Al ha Printed atthe Minty of fence, Ln thorteg "4S SUEME a leer wth names of san" eae Ute auarzed to colct cheques "ond sorte Salary offcias with 2 the yack the cheques at the Ministry of France snd ate OVERTIME PURPOSE ‘The Purpose of overtime remuneration is to remunerate staf members, as required by the Labour Act, when they perform overtime in terms of tre Public Service Staff Rules with regard to overtime duty, In terms of section 32 of the Labour Act @ staff member shall be paid overtime remuneration when he or she is required or permitted to perform overtime duty. DEFINITIONS “Night” means any period between the hours 20:00 and 07:00 day” Sc holdy cetera to Ino decd “Public hliay” means any pul oly fered nor de Under eon 1 the Publ ays At 1901 Bet 9 of 1981) z at member vio ramaly wots en sunday" means in the as of aff men Sng cheer doy ashe ose normaly elev on uty Tou thereof. leans remuneration as defined in the Labour Act (ie 12 of “Remuneration” bn as dene nthe abou any payment in money made or owing to any staff member by his or her employment.5.2 53 “overtime for shift workers”: Before 40 hours Is paid for shift workers for the fact that ‘working during the night. After 40 hours Is paid for shift workers who completed #0 No¥rs RATES OF OVERTIME REMUNERATION In terms of section 32 of the Labour Act rates of overtime re must be calculated as follows: + Overtime duty performed on 2 day (ie. Monday to Friday) other than a Sunday or public holiday: (Annual remuneration + 2080) » 1.5 = hourly rate + Overtime duty performed on a Sunday (or public holiday right: (Annual remuneration + 2080) x 2 = hourly rate ‘+ Overtime duty performed during shifts: Before 40 hours: (Annual remuneration + 2080) x 6% ‘After 40 hours: (Annual remuneration + 2080) x 2 + 6% APPROVAL PROCEDURE ‘The following procedures must be followed before any overtime c performed: «Request approval for overtime from Accounting Officer oy way oF 8 submission; a «if the total hours exceed Le, 10 hours per week, Ministry of Labour's approval is needed before overtime Is performed: «If expenditure is budgeted, the Financial Advisor shoud recommend the request; «If expenditure is not budgeted, Treasury approval is rust be communicated to the Personnel and Salary Offices. ‘awpersoysittime -duty is completed "the*followinguapincedure must be followed: «Overtime must be clalmed on a monthly bass + RSdance Registers must be signed By the saFf member 2 well as the supervisor; «Batt members must complete and sign an overtime ain form;+ The supervisor must. verify and si i ign the claim form; +The claim form is submitted to the Personnel Ofte; k + The head of department recommends tf re head of de '5 the payment by signing on 5.4 Functions of the Personnel and Salary Offices ‘The personnel Office must- + Determine the staft member's overtime tariff per hgur; “Verify that the authorization €xist for the performance of overtime , duty; and: ‘+ Forward the claims to the salary office, The salary Office must- + Verify that authorisation for the expenditure exists; and ‘+ Prepare the overtime payment to the staff member. SITUATIONS WHERE OVERTIME DUTY WILL NOT BE REMUNERATED ‘Overtime duty performed in the following circumstances will not be remunerated: * Working at home without the permission of the Accounting Officer * Working overtime without approval by the A inting Officer 6. PROMOTIONS AND TRANSFERS 6.1 ADVICE / NOTIFICATION For any promotions or transfers the Salary Office should receive an advice from Personnel Office stating all the relevant information concerning the ate and ministry on which the promotion or transfer is to be effected 6.2 EFFECT CHANGES ‘The Salary Office is to effect changes as per personnel advice if a staff member is promoted, the necessary changes must be effected €.9.:63 64 Promotion -Correct notch and date of promotion Correct rank and pay point if necessary ‘Transfers sor internal transfer correct pay point ra Fernand any other changes, that snoulé B= Drfected according to the HR advice external Transfers — Stop salary and prepare 2 last POY certificate SOP the responsiblity of the Salary Office to Take sure that they recall and report for Mreavery,, all undeserved salaries and Slonances paid to staff members who have been transferred to other ministries. LAST PAY CERTIFICATE (see attached example) (Annexure 1) “The purpose of a last pay cetfiate is to inform the receiving miy of qh et date of payment of salary and all concomitant records, COPIES of Cee gach as court orders, unions, social security. and 38 Gepartmental debt must be attached. This certificate should be, forwarded deter tepatment, which in tur shoud forward it together with the staf member's personnel file to the receiving ministry. NOTIFICATION FROM HR EFFECTING CHANGES ‘the Salary Office receives an advice ffom HR to effect transfers, promotions. These should be treated the same asin Pare 3.1.1 above. SERVICE TERMINATION When 8 statt member's salary is to be terminated the following must be fone’ Stop salary. Fhe termination date is before the end of the month, the salary must be recalled from financial institution Trae of cheque payment, this should be held back and weitten back se care g pay pro-eta salary and allowance If only 2 portion of @ month is payable (see attached example) (Annexure H) Bava Ermination date Is at the end of the curent month, the Sta member Is ertitied to the full salary. a8. LEAVE 8.1 LEAVE GRATUITY HR determines the number of leave days payable to the staff salary office must verify that the Information on the | basic salary and allowances correspond with file; c member. The leave gratuity advice Le., the information on the selary master late the amount of leave gratuity and effect the payment, ‘The salary office must ensure that the salary master fles are terminated on time to avoid overpayments. If the salary master flle was not terminated on time, the salary office must determine the overpayment and recover it from the leave gratuity. A tax directive must be obtained from the Inland Revenue Department w leave gratuity amount exceed N$i0 000.00 ve the Pay severance pay as instructed by HR 8.2 UNPAID LEAVE AND SUSPENSIONS absent from be Unpaid Leave: A salary deduction is made when staff members a duty without authorization or do not have enough leave days. Itc deducted In two ways: 1. Leave withodk pay - 100% chergesble: 0° 2! Leave without pay 08 a 50/50 basi ~ 50% of ori FORMULA = See calculation as per Annexure H ‘The amount charged on housing subsidy is deducted on 2 § code. FORMULA = as per annexure H If charged on 2 50/50 basis, divide amount by 2erence: According to the Defence Act, a miltary staff member should not foose his/her benefits during the period of suspension. Recall salary bank ‘Transfer salary to the “suspension” pay point ‘Change pay mode to “cheque” ‘write back nett amount of cheque When staff members report back for duty, pay nett amounts for the applicable period and pay salary as arranged previousiy. Police: In the Police Force the salary is stopped completely until police officers: apply for financial assistance. The Officer should submit a list of his/her monthly expenses to the Disciplinary Committee. They evaluate the salary against the expenses and decide what amount (part of salary) can be paid for the duration of the suspension. When the officer reports back on duty, the salary Is reinstated and the amount that was paid is deducted. 9 RECOVERY OF MINISTERIAL DEBT ‘The leave gratuity payable on termination of services should be used as a set-off against any Ministerial debt, which a staff member may have, unless such debt can be recovered by other means, e.g, outstanding salary and allowances. In cases where the staff member's services terminate as a result of death, any departmental debt must be claimed from the deceased's estate and not from the leave gratuity. ‘The collateral guarantee (if any) should be deducted from the leave gratuity or from GIPF (HR must advise). 10. SALARY ADVANCE: “Treasury Instructions State (HC 06) Unless the Treasury determines otherwise, payment of salaries take place on the last working day of the month, 1A Salary advance can be granted to a staff member depending on the ‘actual working days he/she had worked for that particular month. The emphasis of the advance is not a loan and can only be granted in cases of death, medical expenses of the staff member and his /her immediate family members, 234d) Part of the register of payment is @ listin reflecting the gross salary ig of the registereg reflecting ‘expenditure for @ specific month, a ge PO ‘he gross salary is also reflected per correct shossi are A simmer tion code: ° ) For each deduction made from a ) sala nt, report ls generated FY Payment, @ detaled reconeliation {) For each deduction a specific sus h ic suspense For each deduction 2p pense account code is crested within the 4) The register of payment (Paya following information: (Parrl cashbook Report) shoud refect he PART I - Per Department and date of payment, in a PAR 5 nt, in alphabetical order, the names of al staff members pal on thet sea pay, provi das ~ | Name of staff member = Salary Reference Number + Pay point number = Total gross salary with breakdown of salary and allowances = Total deductions with breakdown of type of deductions and amounts = Nett salary payable = Payment method (cheque, bank deposit, cash) = Total for the payroll report indicating gross salary, deductions, nett salary, total nett per payment method. PART II = The actual accounting entries for the pay run providing detals of; 2 Gross salary with vote allocations being charged with expenditre Zach type of deduction with the amount and suspense 2erount 250g edited with the amount deducted, Note that all PDMS deductions Sre credited to salary interface Control Suspense Accours = Net salary payable with breakdown of sisponse account being charged (bills payable or electronic banking) : Se aaee crm of transactions being posted to General age PART IEK ~ Breakdown of gross slay per Paypaint of department reflecting the following information; - Paypoint number = Paypoint name ~ Basi salary amount : Je of allowan ind amount ce ar alary and alowance) should always pari, and 1 Note that the total of gross salary P=" FaANNEXURE B CALCULATION OF PENSION CONTRIBUTIONS POLITICAL OFFICE BEARERS 2423.61 (monthly contribution) 2,5 = 6 059.03 (monthly contribution) OTHER STAFF MEMBERS in: 7 420.50 x 7% 519.44 (monthly contribution) portion: 519.44 x 2.286 = 1 187.44 (monthly contribution)‘TAX TABLES ~ ANNEXURE C1 1, TEMPORARY EMPLOYEES: 2 DEDUCT EMPLOYEES’ THE RATE / REMUNERAION PAID OF a7ie FROM TABLE F ~ STATUTORY TAX RATES (FULL TIME EMPLOYEES) [TAXABLE ~|RATES OF TAK Where the taxable amount does not | No tax payable | ‘exceed NS24 000 | Exceeds N$24 000 but does not exceed | 17.5% of the amount by which the Ng40 000 [taxable amount evened N$2# 000 | Exceeds N40 000 but doesnot exceed) Nfz 80 pus 25% of the amount by | | N80 000 ‘which the taxable amount exceeds | oie | Exceeds N$80 000 but does not exceed | N§14 600 pls 34.5% of the amount | 1N$200 000 whic the. teeable smount. exceeds | | |g one | exceeds ns200 000 | Ns56 000 ous 35% of te amour by | wich thet ns 200.090 exceeds |ANNEXURE C2 MANAGER'S HOUSING ALLOWANCE: RULES 1. Proof of the actual instalment paid on @ morta: wage bond or rental is needed ‘and must be provided to the Salary Office throug! 7% the Personnel Off bed rate of 4% of salary rit 2. Managers renting government houses at the pres e as the fringe do not qualify for any tax exemption on their housing allowanc benefit of the government house is already exempted by 1/3. 3. Managers renting houses and pay market related rent, e.g. NS 4000.00 per ‘month, qualify forthe tax exemption on the housing allowance. 4. The following rules apply for the calculation of the tax free portion of the housing allowance: 4.1Actual rent or bond instalment higher or equal to housing allowance ‘The 1/3 tax-free portion is calculated on the allowance Example: Allowance Ng 4 000.00 per month Instalment N§ 4 200.00 per month 13 of allowance NS 4000 +3 = 1 333.33(non taxable portion) Allowance Ng 4000.00 Less tax free portion NS.1.333,33 Taxable housing allow. Ng 2 666.67 4.2 Actual rent or bond instalment lower than allowance ‘The 1/3 tax-free portion is calculated on the actual instalment. Example: Allowance N§ 4 000.00 per month Instalment NS 2 500.00 per month 1/3 of instalment N§ 2 500.00 + 3 = 833.33 ‘Thus allowance NS 4 000.00 Less tax free portion —-N§_833,33 ‘Taxable housing allow: N§3 167.67 5, If no proof of actual instalment or rental band is submitted, the allowance is 100% (fully) taxableANNEXURE € 2 (1) EXAMPLE 1 GENERAL TAX ~ MANAGERS NOTCH ~ 169 g99 Capital Car Alowience ~ 4 367.17 x 75% 327 538 x 12 39 304.56 9 (annual taxable portion) NBI_ Running cost is not taxable! Housing Allowance - 4 000.09 pm, Housing Instalment = 3 x09.00 57m 3100.00 + 3 = 1033.33 4 000.00 ~ 1033.33 (4 of instalment) (tax free portion) 2 966.69 (taxable housing allowance) 2 35 600.04 (annual amount) Pension - 169 899 x 7% = 11 892.93, 163 899.00 1892.93 (pension) 158 006.07 + 39 304.55 (Taxable Car Allowance) + 35 600.04 ( allowance) axable nousing 232 910.67 (total taxable income) - 200.000,00 (tax table) 32 910.67, x 35% (tax table) i 518.73 136,000.00 (tax table) 67 518.73, wn) = 2 (tax per annu 5626.56 (tax per month)SALARY NUMBER: ANNUAL SALARY: LESS: PENSION % | HOUSING ALLOWANCE: | «800000 ACTUAL HOUSING PREMIUM: 6380.69 pm, | 15,999.96 [CARUCAPTTALCOST: — gs gggy | ay |earqmmanccosn: inion | nonapane pea | — . | ‘Tex per | (scets 200 00n00= 36% N55 00.40 | espe | taxper | ‘Month: ANNEXURE C2 EXAMPLE 2 1000000 183,754.75 170,891.92 22,9000 29,30486 po Leases | PI 7S e678 ——— sa9740ANNEXURE C2 1000000 ANNUAL SALARY: LESS: PENSION HOUSING ALLOWANCE: (Lower than instalment) ACTUAL HOUSING PREMIUM: 734.06 /3 x12 CAR: (CAPITAL COST): CAR: (RUNNING COST: 38,051.00 exceeds NS 200 000.00 135% + NS $6 000-00) % 36,000.04 2,936.28 83,063.76 15% Non-taxable ‘Taxable | Income! ‘Tax per ‘Anau ‘Tax per Month | 251,521.75, [azco6s2 | mages | | 37734599 -—_F 118,036.1000 g0_(taxable income) 30.20 9 000.00 (tax t2bI@) 25 730.20 39,5% (tax table) 7442.91 4 _22800,00 (tax table) 7242.91 (tax per annum) 2 953.58 (tax per month)ANNEXURE C4 TAX — SALARY + RENT ALLOWANCE/HOUSING SUBSIDY NOTCH - 70140 Rent Allow/Housing Subsidy - 1 089.00 p. m. 4089.00 + 3 x 2 = 726.00 x 12 = 8 712.00 (% of rental allowance/housing subsidy is taxable) 8 712.00 = taxable subsidy/rent allowance Pension = 70 140 x 7% = 4 909.80 70 140.00 4 909.80 pension 65 230.20, + 8 712.00(% of annual housing subsidy) 73 942.20 (taxable income) + — 49.000.00 (tax table) 33 942.20 x 29.5.% (tax table) 10 012.95, + 2800.00 tax per annum 12.812.95 + 2 [067,75 tax per annumANNEXURE CS (A) 0 TAX ~ OFFICIAL ACCOMMODATION WHERE SALARY EXCEEDS NSS 000 PER ANNUM Notch ~ 70 140 Monthly Tariff - 233.80 (as per OPM) Ref. No — 1221035313600 First 3 Characters "2" = located in Windhoek 40 Character “3” = 3 rooms 11" Character "G” = Family Quarters Please use attached table to determine the taxable portion on official ‘Accommodation, 1 000,00 (Rebate according to table) ~ 233.80 (monthly tariff) = 766.20 + 3x2 (% of difference is taxable) 510.80 x 12 6 129.60 (taxable portion) 70 140.00 - 4909.80 (pension) 65 230.20 6128.60 71 359.80 (chargeable amount taxable Income) - +40 000,00 (tax table) 31 359.80, x 22.5 % (tax table) 9251.14 + -2.800,00_ (tax table) ¥2.051.14 (tax per annum) 12 004.26 (tex per month)ANNEXURE C5 (B) OFFICIAL HOUSING a “Tax Calculations for Additional Tax benefit where staf members salary per am Is higher than 15 000 but lower than 30 000. Example: Annual Notch 25905 1 Establish full tax value of house: location, number of rooms, married/unmarried. Example: Windhoek, 2 rooms ~ married ‘Tax Value as per schedule = 750.00 Calculate rent payable (4% or 2%) Example: 4% of annual salary + 12 25 905 x 4% + 12 = NSB6.35 per month Calculate additional tax benefit by deducting 15 000 from the annual percentage salary and establish the percentage as follows; Example: 25905 = 45.000 10905 + 150 = 72.70% 100,00 ~ 72.70 = 27.30 9% Additional tax benefit value 27.30% Calculate monthly tax portion Full value 750.00 Less: Actual Rent £6.35 663.65 x 27.30 % Less: Add portion 27.30 % = _181.17 482.48 +3 Less 1 tax benefit 190.82 321.66 monthly tax valuescontin with normal tax calculations efit + value of housing benefit. Slay less pension ben® 25 905.00 - salary = 1813.35- pension “L 3.g59.92 — value of house per year 27 :951.57 taxable salaryANNEXURE C7 (A) — ASSIGNED VEHICLES ‘TAX POLITICAL OFFICE BEARER Note: The market value ofthe car must be obtained from the government garage and the market value must be changed at the start of every tax year, POB'S (April 2004) SALARY NUMBER: 19000000 ANNUAL SALARY: | 272,160.00 LESS: PENSION 10% = | 272 244,944.00, ‘TAXABLE HOUSING BENEFIT 111219212 | 135,000.00 229 885.00 1.5% | CAR: TAXABLEBENERIT. 2 sass28x12- | 4137936 ord Blazer) — o y Taxable Income: | 42132336 | l= (Exceeds NS 200 000.00 = 35% + NS 56 000.00) Annum: | 13346318 | / | reper ont [12.88| SALARY NUMBER ANNUAL SALARY: LESS: PENSION TAXABLE HOUSING BENEFIT CAR: TAXABLE BENEFIT (Pool Vehicle) a ; TAX ON POOL VEHICLE ANNEXURE C7 (B) (P.O.B's) _ q soto | | 1% — | ass000 __& a | | 100.00 pam. x. | n | 1,200.00 | Taxable | | Income: | 369,480.00 (Exceeds NS 200 000.00 = 35% +NS 56 000.00) | tax per Anaum: | 115,318.00 | 1 “coun aaANNEXURE C7 (c) ‘TAX ~ POLITICAL OFFICE BEARERS: GENERAL Notch - 276 984 Water and Electricty ~ 225,00 (non-taxable) Telephone ~ 120.00 (non-taxabie) Housing Allowance ~ 12 500.00 (fully (100%) taxable) Cost price of car ~ 200 000.00 x 1.5 % = 3 000.00 (taxable portion) Pension ~ 276 984 x 10% = 27 698,40 276 984.00 - 22.698.40 (pension) 249285.60 + 12.50.00 (housing allowance) + 000.00 (taxable portion of car cost price) 264 785.60 ~ 200,000.00 (tax table) 64 785.60 x 35% (tax table) 22 674.96 + 36.000.00 (tax table) 78 674.96 + 2 (tax per annum) ‘6556.25 (tax per month)osoo'901 Nu weir su —js0ssor “woe ON elt sn ()minniny wad ANNOWY TTAVIENL BV HUNOW wad AUIVS NOK (6) ‘ovrovg vb SN + (xss¥E 0008 $N SPB9mx3) NNN BA KYL (2) Annoy gTavKvL TWONNY (b) (24 x26 /Ov98y $N) S11SNIG BONIS TWANNY sma (tad) NoIsNad TWANNY ssm1 RATS WANN ‘shNog NO"FAV'd 40 NOLWINDTVS 90 RUMXGNNY‘SN :HINOW SnNOg wos x¥L TWIOL SN sng No xv SN :AUVIVS ATHINOH NO YL HINOW 34 sno NO v1 (2) xvi :ss3a7 LeyS6'92 SN () WANN wad Xv Tes su (007009 Hb SN + (X6'PE x 00008$N SP99Dx3) NANNY WBE XVL (6) sx'eoe'stt su nny wad INNOWY TTaNKWL MN “(e) sree SON ‘snnog ‘aay rT & Th. Te 4ANNEXURE Co TAX ~ REJECTION SALARY joa stalf member owes monies to the Overnment, a rejection journal passed. The debt amounts must be Aeducted trom the grass salary to taxable income, NOTCH ~ 70 149 Rejection deduction ~ 150.09 Pension - 70149 X7% = 4 909.80 4909.80 65 230.20 65 230.20 (taxable income) 430.00 (Rejection deduction) 65 080.20 : (tax table) 25 080.20, x 29.5% (tax table) 7 398.66 + 2 800.00 (tax table) 10 198.66 2 (tax per annum) 842.89 (tax per month)ANNEXURE H FORMULA TO CALCULATE PRO-RATA SALARY AS PER. WORKING DAYS (260) (7 PRO RATA SALARY: 30 June ‘05 — 09 July ‘05 = 10 CALENDAR Daj ACTUAL DAYS: 10 x 21.666 = 7.222 (working days) 30 1 RY NOT 27,969 X 2222 = 776.89 (Pro-rata payment) WORKING DAYSP.A_ 260 1 PRO-RATA SALARY FOR 7 WORKING DAYS = N§ 776.89 L 2. PRO-RATA RENT ALLOWANCE i 22-31 JANUARY ‘2003 _= 10 CALENDAR DAYS ACTUAL DAYS 10 x 21,666 = 6.989 (Working days) 31 1 = 116.12 (Pro-rata payment) SUBSIDY P.A. x [WORKING DAYS P.A. 260 { [PRO-RATA SUBSIDY FOR 6 DAYS = 116.12 _