Definition of salary – Old Mutual

When running quotes for Old Mutual, we are required to use either the Cost to Company salary, or Pensionable salary. Please make you stipulate which one applies when requesting quotes.

  • Cost to Company:This is the total salary package of an employee. It includes all costs associated with an employee’s employment and, therefore, includes the employee’s gross salary plus the employer’s contributions on behalf of the employee.
  • Pensionable salary:This is the income used by the employer to calculate the employee’s pension or provident fund contribution, as determined by the individual employer.Pensionable salary is often defined as a percentage of Cost to Company, or it could be the employee’s gross income less things such as travel allowances and bonuses.

Should you require more information, please contact your Associate or the office.

Thank you and regards,

The TSA Team

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