How to calculate Salary Advance
When it comes to salary advance, many doubts may arise. After all, how to correctly calculate this value? In this article, we will explain step by step how to calculate the salary advance, ensuring that you are on top of all the details.
What is Salary Advance?
Salary advance is an early amount to the employee before the regular payment of the salary. Usually, it is granted when the employee needs an extra amount before the payment day.
Step by step to calculate the salary advance
To calculate the salary advance, follow the following steps:
- Check the employee’s gross salary value;
- Divide the value of gross salary by 30 (days of the month);
- Multiply the result obtained by the number of days the employee wants to advance;
- Subtract this amount of mandatory discounts, such as INSS and Income Tax;
- Add to the value obtained the proportional benefits, such as transportation voucher and meal voucher;
- The end result will be the value of the salary advance.
Practical Example
Let’s assume that the employee’s gross salary is $ 2,500.00 and he wants to advance 10 days. Considering that the mandatory discounts add up to R $ 500.00 and the proportional benefits are R $ 200.00, the calculation would be like this:
| R $ 2,500.00 | 10 | R $ 500.00 | R $ 200.00 | R $ 1,000.00 |
In the example above, the salary advance would be $ 1,000.00.
FINAL CONSIDERATIONS
It is important to note that the salary advance must be agreed between the employer and the employee, following the rules established by the labor law. Moreover, it is essential that the calculation is done correctly, taking into account all proportional discounts and benefits.
We hope this article has clarified your questions on how to calculate the salary advance. If you still have any questions, leave in the comments below. We are here to help!