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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


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Last update: 10 Nov 2017

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