Income calculation formula

[cosak]

Hi guys,

I came across on this forum a formula which was done for non salaried employment. it was something like this:
gross income of 28 weeks / 28 = average weekly wage
average weekly wage x 26 / 6 x 12 = annual gross income

i have been told slighly different formula before which is : total of gross weekly income of 26 weeks / 6 x 12 = gross annual income.

i am confused as why and how 28 weeks been used by one of the adviser on this forum..i wish i could pull out the thread link and share it here but can't find it... please advice as it's getting even more complicated for me now.... thanks

[cosak]

hi guys

i have found the link where the above formula has been used by 'Walker'... http://www.immigrationboards.com/immigr ... 21312.html

i wonder if someone could advice whether to use 26 weeks or 28 weeks?? please

[MobeenSaeed]

Hi guys,

I came across on this forum a formula which was done for non salaried employment. it was something like this:
gross income of 28 weeks / 28 = average weekly wage
average weekly wage x 26 / 6 x 12 = annual gross income

i have been told slighly different formula before which is : total of gross weekly income of 26 weeks / 6 x 12 = gross annual income.

i am confused as why and how 28 weeks been used by one of the adviser on this forum..i wish i could pull out the thread link and share it here but can't find it... please advice as it's getting even more complicated for me now.... thanks

The individual "Walker" is wrong in this case. Looking at the link you have provided to the thread in question, his calculation and reasoning goes as follows:

To obtain your gross annual income, he assumes you divide by 28 (this will give your weekly salary) and then multiply by 26 to get your gross annual salary. This is completely wrong, because in his example his assumption is this is the calculation you use if you get paid every 4 weeks i.e. salaried

As you should know by now salaried is calculated much differently. Your lowest wage is taken each month and that is multiplied by 12.

Now, you are non-salaried and applying Cat A, so, what you do is: (total gross income for 26 weeks/6)*12 = annual gross income.

[cosak]

thanks a lot mobeen, really appreciate your help...