How To Easily Calculate The Exact Amount That Will Be Added To Salary After Promotion For Government Workers On SSSS.

Teaser 1: Confirm the gross salary for ADII on step 5, who got promoted to ADI pending placement on appropriate scale

Teaser 2: G.E.S and other government workers on the single spine salary structure can now easily calculate the extra amounts that would be added to their salary pending their placement on their appropriate salary scale after promotion, since the placement on the appropriate scale does not have any fixed lapse period between the promotion and when the person is actually kept on the right scale.

Teaser 3: Promoted staff are likely to start budgeting for an assumed amount that would be added to their salaries. The worst is when such a staff starts to spend on such a wrongly assumed amount that would be added even before the staff is placed on the correct salary scale.

Discussion of issues relating to salaries of workers are shaded in secrecy. This makes people who are recently promoted unable to determine the exact amounts that would be added to their salaries until the salary actually takes effect, especially when the placement of the promoted staff on the right salary scale can take several months to be effected.

A. For the purpose of clarification, any goverment staff on the single spine salary structure who is promoted have two (2) possible percentage increases in salary.

1. A 1.7% increase in salary if the staff is not enjoying any extra responsibility allowance at work

2. A 3.4% increase in salary if the staff is enjoying an extra responsibility allowance.


B. Though the gross salary for ADII step 5 is Ghc3426.47 (2979.54 as basic salary and 446.93 as retention premium), this calculation will use

1. Monthly gross salary (that is the sum of basic salary, retention premium and all other allowances) of Ghc3,000.00

2. Employees social security deductions of 5.5%

3. A tax bracket of 17.5%. Though the tax brackets used to charge salaries are 5%, 10%, 17.5% and 25%, the salary amount added to almost every worker on the SSSS after promotions will fall within the 17.5% tax bracket.

4. Provident fund deductions before tax will not apply in this calculation because provident funds are voluntary contributions and do not apply to everyone.

5. Therefore, the only rates that would be subtracted from the assumed current gross monthly salary of Ghc3,000.00 are employee SNNIT deductions (5.5%) and tax of 17.5%.

C. To find the NEW gross salary after placement on the right scale, multiple your current gross salary of Ghc3,000.00

a. by 1.7% (0.017) if you do not enjoy extra responsibility allowance (Ghc3000 x 0.017 = Ghc51). Ghc51 will be added to the salary of the staff who do not enjoy an extra responsibility allowance.

b. by 3.4% (0.034) if you enjoy extra responsibility allowance (Ghc3000 x 0.034 = Ghc102). Ghc102 would also be added to the staff if he or she were on responsibility allowance.

D. SNNIT deductions of 5.5% must be deducted first before taxation. And when 5.5% is taken from 100% (100% – 5.5%), it would be left with 94.5% of your gross addition. Then multiple 94.5% (0.946)

1. by Ghc51 if you are not on extra responsibility allowance. That is 0.945 x Ghc51 = Ghc48.195. Hence, the staff will be left with Ghc48.195 after SNNIT deductions

2. by Ghc102 if the staff were on extra responsibility allowance. That is 0.945 x Ghc102 = Ghc96.39. Anyone on extra responsibility allowance will also gain Ghc96.39 after SNNIT deductions.

E. After SNNIT deductions, taxation is the next deduction to make. In this case, any extra addition to salary will be captured in the 17.5% tax bracket. When 17.5% is subtracted from 100% (100% – 17.5%), it would be left with 82.5%. Therefore, 82.5% (0.82.5) will be found for the amount that remains after SNNIT deductions, that is

1. For staff without extra responsibility allowance, it will be 0.825 x Ghc48.195 = Ghc39.76. Therefore, staff without a responsibility allowance will receive Ghc39.76 extra in net addition to his or her salary.

2. For staff who enjoy extra responsibility allowance, their extra net salary addition will be 0.825 x Ghc96.39 = Ghc79.52.

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