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An employee earns $24.000 per annum ($2,000 per month). In May a salary increase was agreed to $26,400 per annum, which was backdated to 1 April. In addition, a 2% bonus of basic monthly salary is payable if the company profits exceed a certain figure. The profit threshold was passed for May. What is the employee’s gross pay for May?
(A).$2,244
(B) $2,444
(C) $2,040
(D) $2,440
Sir the answer is B and he is adding 200 of Backdated. Can you please explain?If no bonus, the May gross amount would have been:
26,400/12 + 2,400/12 [for April backdate] = 2,400
The bonus payable will be 2% x 26,400/12 = 44
Total payment = 2,444.
Sir why are we adding April Backdate:
26400/12= 2200 and2% payable of Bonus which is 44.
2244
Can you please explain me the logic.The backdated rise means that the employee should be paid the new salary from 1 April, however, the arrangement was too late for the April salary. May’s salary therefore contains a catch-up for the rise that should have been paid in April.
The employee is also r to receive a bonus in May of 2% of May’s salary.
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