Example of Make-Up Pay (Average Income Option) Calculation
Your Make-Up Pay is derived from the number of days in the month of your Operationally Ready National Service (ORNS) activity.
The following is an example of how your Make-Up Pay is calculated:
Occupation: Insurance agent
Period of ORNS activity: 1 to 20 November 2017
Duration: 20 days
Total days in November: 30 days
Monthly Service Pay of an Infantry 3SG = $990
Service Pay for this period:
= 20/30 days x $990
= $660
Claimable Average Monthly Income (based on earnings from May to October)
| 1st Year commission | $2,000 |
| Production commission | $1,500 |
| Bonus | $400 |
| General Insurance commission | $250 |
| Single Premium commission | $350 |
| Personal Accident commission | $100 |
Total Claimable Average Commission = $4,600
Expenses = $2,000
Claimable Income:
= (Claimable Commission – Expenses) + (Computed Loss in Renewal Commission: 42% of 1st Year commission)
= ($4,600 – $2,000) + (42% x $2,000)
= $3,440
Pro-rated Income Loss Due to ORNS activity:
= (Claimable Income x ORNS activity duration) / Total number of days in the month of your ORNS activity
= ($3,440 x 20) / 30
= $2,293.33
Result: Your Make-Up Pay will be: Income loss – Service Pay for the duration of ORNS activity
= $2,293.33 – $660
= $1,633.33
