Tier 1 General Migrant - gross salary question

[amrhady]

Hello,

I am applying for work permit under Tier 1 general. I am submitting HR letter (salary transfers per month) and bank statements - for previous earnings.

My salary has a 15% variable pay(paid quarterly), so the amount transferred to my bank is different every month. Does this have to be reflected in the gross salary as well? I mean, my employer letter (HR) is showing the same gross salary for all months, does it have to be shown varying corresponding to amount transferred to bank?

Thanks.

[prisat]

Hello,

I am applying for work permit under Tier 1 general. I am submitting HR letter (salary transfers per month) and bank statements - for previous earnings.

My salary has a 15% variable pay(paid quarterly), so the amount transferred to my bank is different every month. Does this have to be reflected in the gross salary as well? I mean, my employer letter (HR) is showing the same gross salary for all months, does it have to be shown varying corresponding to amount transferred to bank?

Thanks.

See

Any taxable component paid by your employer is ur Gross Salary from that company. It can be an any of the following
-- Incentive
-- Bonus
-- Allowances (all types of allowances)
-- Basic Pay

Incentives / BOnus is a variable factor and most of the companies in India offer that either in Quarterly or Yearly manner. WHateever case it may be, this amount is also a part of ur salary component and is taxable and will be taxed appropriately.

If your Incentive payout is on July/ October/ Jan / May, then all the four months salary slip should have this variable component and this payment should match with ur salary credit into bank. I am sure any standard company will pay in such a way.

Thank you.

[aspirant99]

Hello,

I am applying for work permit under Tier 1 general. I am submitting HR letter (salary transfers per month) and bank statements - for previous earnings.

My salary has a 15% variable pay(paid quarterly), so the amount transferred to my bank is different every month. Does this have to be reflected in the gross salary as well? I mean, my employer letter (HR) is showing the same gross salary for all months, does it have to be shown varying corresponding to amount transferred to bank?

Thanks.

Just make it sure that the gross & net salaries are mentioned on ur payslips, and the net salaries correspond exactly to the amount credited in your bank statements....Net salaries can be different for different months.dont worry about that...good luck!!

[amrhady]

Thank you very much for your reply.

Salaries in pay slips( in my case, employer letter) do correspond to bank statement amounts. My concern is that on the same letter, gross salary is the same for each month, unlike NET salary which is not.

[amohsen]

Hello amrhady

I'm about to apply to Tier-1 visa and I do have the exact same question .. if I apply using a company letter stating (gross and net salaries) in addition to my bank statements showing the transfer of the exact net salary, would they consider that enough proof or would they need a second proof for the gross salary??? .. and what if my monthly gross salary is fixed for the 12 month but my net salary is variable because of the 15% reserved and paid at the end of each quarter which makes the net salary bigger than the gross salary at the end of the quarter

please advise if your application was successful

thanks a lot

[geriatrix]

what if my monthly gross salary is fixed for the 12 month but my net salary is variable because of the 15% reserved and paid at the end of each quarter which makes the net salary bigger than the gross salary at the end of the quarter

How can net salary be greater than gross salary? Even in countries where income is tax free, gross salary may be equal to net salary, but never greater!

Also, how can the gross salary be the same for 12 months when every quarter variable pay is included in the payslip? As already explained above, variable pay is part of the gross salary of the month in which it is paid - so gross salary in such cases cannot be same for all 12 months.


regards

[amohsen]

hello sushdmehta and thanks for you reply

net is greater than gross for certain month as follows:

if my monthly gross salary is 100 USD and 20% of it is deducted for taxes, then the remaining net is 80 USD, my company reserves 15 USD from the 80 USD and pays it at the end of each quarter .. for example:

May Gross = 100 USD & May Net = 65 USD (80 - 15)
Jun Gross = 100 USD & Jun Net = 65 USD
Jul Gross = 100 USD & Jul Net = 110 (65 +15+15+15)

and my question was would that be acceptable by the assessment officer???

[geriatrix]

Jul Gross = 100 USD & Jul Net = 110 (65 +15+15+15)

Flawed interpretation / inference!

May & June
Gross = 100
Net = 65
July
Gross = 100+15+15 = 130
Net = (100-20)+15+15 = 110


regards

[mulderpf]

Jul Gross = 100 USD & Jul Net = 110 (65 +15+15+15)

Flawed interpretation / inference!

May & June
Gross = 100
Net = 65
July
Gross = 100+15+15 = 130
Net = (100-20)+15+15 = 110


regards

Looking at this, you are double counting sushdmehta - what Amohsen posted makes sense (although unusual). You have already included the 15+15 in your gross for May & June and now you're saying to add it back again to the gross for July?

Anyway Amohsen, I think you will just have to explain the earnings very carefully and don't leave it up to the visa officer to interpret. As long as your total net is less than your total gross!!

[amohsen]

Thanks to all of you

[geriatrix]

Looking at this, you are double counting sushdmehta - what Amohsen posted makes sense (although unusual). You have already included the 15+15 in your gross for May & June and now you're saying to add it back again to the gross for July?

Actual earnings (e.g. - on payslips) are computed on the basis of "gross or net payables" in the given month, and not on the basis of what may be referred to as gross (monthly) salary according to an employment offer / appointment letter. Any proportion of income paid to the employee in a month later than when it was initially due is usually shown as "arrears" in the payslip of the month it is paid in. And arrears form part of the "gross payable" for the month they are paid in.

Not a finance expert but, IMHO, any document stating net income > gross income will come under scrutiny as it defies basic principle(s).




regards

[amohsen]

thank you sushdmehta

so you are saying it should be reported like that
May & June Gross = 85
July Gross = 130

that way average gross will be 100 .. correct?

[rajput]

Similarly, I have a query related to gross. My payslips have got components like basic salary, overtime and on call. Can I claim points for combined earnings or just basic salary?

[silverline]

hello sushdmehta and thanks for you reply

net is greater than gross for certain month as follows:

if my monthly gross salary is 100 USD and 20% of it is deducted for taxes, then the remaining net is 80 USD, my company reserves 15 USD from the 80 USD and pays it at the end of each quarter .. for example:

May Gross = 100 USD & May Net = 65 USD (80 - 15)
Jun Gross = 100 USD & Jun Net = 65 USD
Jul Gross = 100 USD & Jul Net = 110 (65 +15+15+15)

and my question was would that be acceptable by the assessment officer???

That's perfectly alright. Your HR letter of equal gross pay in all months is correct. It's a simple case of deferring part payment of net pay.
Effectively you are receiving 80 related to July pay & 30 for May & june pay.

All you need to do is to get a letter from your employer to state the fact that certain % of net pay is deferred for payment until qtr end or perhaps your employment contract might already have this provision. But remember case worker will most likely exclude unpaid element of gross pay. e.g if you claim points upto June's gross pay you can't claim points for gross amount of deferred net payment of May & June. Because you will receive that in July. As of June, it will be unpaid element.

Also, it's good to make a Ladder Schedule to help case worker understand & reconcile the gross & net pay elements.

Basic pay, call on pay & overtime all are earned sources of money for claiming earning points.

[amrhady]

Hello amrhady

I'm about to apply to Tier-1 visa and I do have the exact same question .. if I apply using a company letter stating (gross and net salaries) in addition to my bank statements showing the transfer of the exact net salary, would they consider that enough proof or would they need a second proof for the gross salary??? .. and what if my monthly gross salary is fixed for the 12 month but my net salary is variable because of the 15% reserved and paid at the end of each quarter which makes the net salary bigger than the gross salary at the end of the quarter

please advise if your application was successful

thanks a lot

Hi amohsen,

Make it as a normal HR letter (Title, Salary, Date you joined company) and append below that a table with the following columns

1. Month
2. Gross Salary (Net salary+taxes. This is Fixed for all months. )
3. Net Salary (Fixed for all months)
4. Salary Transfered (In your case, should be different from month to another)
5. Transfer Date (should match the one in bank statement)
6. Variable pay explained very brief(example: 15% for each month of Q1)
Also, Add a final row at bottom of Table for Totals.

Finally, if you can include a page in the documents you're submitting to explain the breakdown of your salary, that would help. You can use it to explain any irregularities in your pay (salary increase, bonuses, and of course variable pay)

on another note, are u planning to pay online before the 23rd and submit biometrics later?

Best of luck

[amohsen]

I was planning to apply on the 27th .. now it is all gone :(

[amrhady]

I was planning to apply on the 27th .. now it is all gone

As far as i understand, you can pay online today before 12 and submit the documents later, and your application will still be considered.

But please verify this information on your own if you decided to proceed.

[amohsen]

all documents were ready except the passport which I decided to renew although it was valid for another 7 months, 2 hours later I learned the news and the passport is coming on staurday, so you can guess how I felt .. I'm egyptian too Amr were do you work?