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Self-Employed NSmen – Average Income Option


Scenario Calculations

Insurance agent, holding 3SG rank,

attending a High-Key ICT

Period of NS Activity: 3 to 14 Oct 2022

Calendar days for NS Activity: 12 days

Total number of calendar days in Oct: 31 days

 

Service Pay (SP) (Based on Calendar Days)

Monthly SP of 3SG: $990

SP for NS Activity period: $990 x (12/31) = $383.23

Claimable Average Monthly Income (based on earnings from April to September 2022)

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 Average Commission – Expenses) + (Computed Loss in Renewal Commission: 42% of 1st Year Commission)

Claimable income = ($4,600 – $2,000) + (42% x $2,000) = $3,440

Civilian Income Loss – Based on Calendar Days

Civilian Income Loss for NS Activity Period = $3,440 X (12/31) = $1,331.61

Make-Up Pay = Civilian Income Loss – SP 

MUP = $1,331.61 – $383.23 = $948.38