Labour Relations Act, 1995 (Act No. 66 of 1995)NoticesNational Bargaining Council for the Hairdressing, Cosmetology, Beauty and Skincare IndustryExtension to Non-parties of the Consolidated Main Collective AgreementAnnexuresAnnexure E : Example of PSC Calculation |
ANNEXURE "E"
EXAMPLE OF PSC CALCULATION
The content of this annexure reflects an example as to how PSC is calculated.
This calculation applies to commission earners, excluding Retail commission as set forth in clause 3.2.17.2 of the National collective agreement.
All amounts used in this example are for illustration purposes only.
Step 1
Add total of preceding 12 months' commission earned, excluding VAT (only if registered). For instance if PSC is to be calculated on the 1st of May during any year the preceding 12 months' commission, excluding VAT, is added.
May (preceding year) |
R3,015.00 |
June |
R4,500.00 |
July |
R3,000.00 |
August |
R2,500.00 |
September |
R2,700.00 |
October |
R4,250.00 |
November |
R2,000.00 |
December |
R3,500.00 |
January |
R1,500.00 |
February |
R1,600.00 |
March |
R1,750.00 |
April |
R5,000.00 |
TOTAL |
R35,315.00 |
Step 2
Divide the total of the preceding 12 months' commission, so calculated, by 12 in order to calculate the monthly average i.e
R35,315,00 divided by 12
= R2,943.00
Step 3
Apply PSC percentage [based on the area in which the commission earner is employed] in order to calculate the monthly rate:—
R2,943.00 X **% [if Area A or D], or R2,943.00 X 25% [if Area B or C]
= R588.60 *[if Area A or D], or R735.75 [if Area B or C]
The amount of R588.60 [if Area A or D] or R735.75 [if Area B or C] represents the monthly PSC.
** |
20% up to 31 may 2023 |
* R588.60 |
21% from 1 June 2023 to 31 May 2024 |
R618.03 |
|
22% from 1 June 2024 to 31 May 2025 |
R647.46 |
|
23% from 1 June 2025 to 31 December 2025 |
R676.89 |
Step 4
Calculate the daily PSC. In order to calculate the daily rate the following needs to be considered:—
| 1. | if the commission earner works 5 days per week, the monthly rate should be divided by 21.67 in order to calculate the daily rate; or |
| 2. | if the commission earner works 6 days per week, the monthly rate should be divided by 26 in order to calculate the daily rate; or |
Therefore:—
| 1. | the monthly PSC of R588.60 (or * R618.03 or R647.46 or R676.89) should be divided by 21.67 [for a commission earner that works 5 days per week] = R27.16 (or * R38.52 or R29.87 or R31.24) |
| 2. | the monthly PSC of R588.60 (or * R618.03 or R647.46 or R676.89) should be divided by 26 [for a commission earner that works 6 days per week] = R22.63 (or R23.77 or R24.90 or R26.03) |
Step 5
Apply the daily rate to the number of leave days, or notice pay, or severance pay to be calculated.
For instance, should the commission earner [working a 6 day week] take 10 days' leave / is entitled to 10 days' notice pay / is entitled to 10 days severance pay:—
The daily rate of R22.63 (or*) multiplied by 10 days:
= R226.30
Therefore, an amount of R226.30 will be payable (subject to the provisions of clause 21 of the collective agreement) to the commission earner 10 days' leave / notice pay / severance pay, in addition to the normal Basic Salary and Wage payable to such commission earner.