Salaries

A: Salaries and wages are calculated by multiplying the actual hours worked or the agreed monthly salary in the employment contract. Allowances (housing, transportation, work nature) and bonuses are added, while absences, delays, and employee deductions (social insurance and taxes) are subtracted.

A: Basic salary is the fixed amount agreed in the contract. Allowances are additional amounts for specific conditions (housing allowance, transportation allowance, work nature allowance). Bonuses are exceptional amounts given to employees for excellent performance or company profits (e.g., year-end bonus or productivity bonus).

A: The net salary payable to an employee (after deducting insurance and taxes) is recorded with the entry: Dr. Salaries Expense (for the gross salary), Cr. Bank Account (for the net salary), Cr. Employee Deductions (for deductions such as insurance and taxes to be remitted to the relevant authorities).