[BBB] 4/22/11 - Friday - Wage & Bonus Rates
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Rom Paul
Greetings from those of us at the Better Business Bureau! [BBB]
Grain - $0.52 | As of 20:00 erep time
Our apologies on not getting this out sooner, our CFO AngryMongolian only recently got home from work and I came back from the tanning salon not too long ago, GTL baby...
For this demonstration we will be using a Level 10 Grain worker, in the future, all levels and jobs will be detailed!
Before I begin, a little real time information...
Grain Price = $0.52
Level 10 (Guru😉
Wage = $53.65
Level 10 Grain Productivity @ 100 health with +10% Booster = 97 Units
After spending a good half hour discussing the numbers, it was concluded that the higher the base salary issued, the higher the tax loss the worker would receive, for example...
Paying a worker a base salary of $25 ($19.25 with 23% tax) and the equivalent of 52 units of grain ($27.04) yields $46.29
Salary = $25.00 | Tax = 23% | After Taxes = $19.25
52 Units of Grain @ $0.52 = $27.04
$19.25 + $27.04 = $46.29
Now this is a good salary for a worker, why? Let me show you...
Level 10 Salary = $53.65 | Tax = 23% | After Taxes = $41.31
So...
$46.29 - $41.31 = $4.98 gain for workers employed in a [BBB] Business!
Now here's the problem. If an employer pays out with a salary system like the one above, he is left with approximately 45 units of grain to sell and make a profit for himself, the only problem...
45 Units of Grain = $23.40
Worker Salary = $25.00
$25.00 - $23.40 = $1.60 DAILY LOSS
The solution is simple. Lets lower that base salary so income tax doesn't take a bite and we can play around with the numbers a little bit.
This is how we would recommend starting off our system, a simple "commune" style wage with the fraction of productivity changing day to day so that workers roughly earn 10% more salary after taxes than the higher offers in the job market!
It could look as simple as this...
Employee
Salary = $1.00 | Tax = 23% | After Taxes = $0.77
87 Units of Grain @ $0.52 = $45.24
$0.77 + $45.24 = $46.01 - Worker Earns After Taxes
Employer
Units of Grain Leftover = 10 | 10 Units of Grain @ $0.52 = $5.2
$5.2 - $1.00 (Salary) = $4.20 PROFIT!
10 Happy BBB Employees X $4.20 = +-$42 Daily Profit
There are MANY MANY MANY MANY factors yet to consider, but this is what we've hammered out so far.
Please let us know what you think, and obviously since the new system is so dependent on the real time of price of goods, we would publish an article daily so business owners know exactly how many units to dish out to employees.
*PS - Future articles, if this one is liked, will incorporate a MUCH simpler graph so that no reading will be required for owners
Comments
yeah, if you can find the people willing to join setting up a commune or co-operative is the way to go.
Good work. Well run the numbers again, I have concerns.
I'm in
I love it!!
The numbers are a little funky here, but the bottom line is that you are just showing the difference between paying out wages - and getting whacked for .23 on every dollar of wages you pay out - and a productivity based compensation scheme. Logically, you should pay out minimum wage and do ALL compensation through donations based on productivity. I'm a Guru 10*, and in our SFP Commune system, I'm pulling in $1.08 per day after taxes(on a $1.40 wage base) plus about $30 per day bonus wage (based on that same 97 grain per day productivity rate)...so that is about the best one can do, with total weekly compensation just shy of $40 a week. More productive workers (e.g. >600 productivity) will of course do better. Our system is fair to the workers and generates sufficient revenue to enable quarterly dividend payouts and periodic stock bonuses to our employees. You can find our companies at the $1.40 rate here:
http://economy.erepublik.com/en/company/sfp-communal-grain-ii/194555
http://economy.erepublik.com/en/company/civil-food/258326
http://economy.erepublik.com/en/company/civil-iron/251097
There is a $2 per day automatic bonus for members of the Socialist Freedom Party
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