- 5 Marks
Question
d) Mrs. Akoto has been engaged by Madane Ltd as the Marketing Manager for 30 years on an annual salary of GH¢20,000.
The following information relates to Mrs. Akoto:
i) Throughout her working life, she earned her best salaries from Madane Ltd.
ii) She has 408 months’ contribution to her credit.
iii) She retired on 31 March 2020 at the age of 60.
Required:
Compute her monthly pension entitlement.
(5 marks)
Answer
d) Computation of Mrs. Akoto monthly pension entitlement: Best 36 months (3 years) average salary * Pension right
Determination of best 3years average salary:
Best 3 years average salary = (20,000*3)/3 = 20,000
Determination of pension right:
37.5% + (408 months-180 months) * 0.09375 = 58.88%
Annual pension entitlement = 20,000 * 58.88% = 11,776
Monthly pension entitlement = 11,776/12 = GH¢ 981.33
- Topic: Income Tax Liabilities, Pension Calculation
- Series: APR 2022
- Uploader: Cheoli