By Suleman Chitera
Consider an average employee with a monthly stipend of MK100,000. After deducting his P.A.Y.E, this individual would receive around MK81,000 and would immediately be prompted to pay his rent, which would approximately be MK25,000 (with the current housing rates).
Remaining with MK56,000, mans would immediately have to budget MK8000 for electricity that month and say MK6000 for water. Which would quickly reduce his balance to MK42,000.
With that, the person would also be forced to budget for his bus fare. If he lives around town then that would amount to MK400 a day & MK9600 for the month. (Assume 24 working days)
With the remaining MK32,000 this person would be required to budget for food and other groceries. Say this person does not buy fancy products, I’d assume atleast MK20,000 would be required to acquire such for the month in a humble lifestyle setting.
Another 16.5% would be VAT, implying that this person has lost MK21,000 to TAX contributions.
With 12,000 remaining, mans would have to eat at work. Say he eats a meal worth MK250 a day (which is the least you can pay for a meal) mans would have to budget Mk6,000 is for the month.
Remaining with MK6,000 in his pocket, this person is expected to live life for a month.
The catch is, the minimum wage is MK25,000. Also, well over 90% of the nation is making less than MK50,000 a month. (Estimated by simple fact that over 60% are earning less than 750 a day&other logical reasons).
Mans don’t even have MK100,000 to begin with.