Reimbursment as per contract
This query is : Resolved
07 December 2016
A Contract clause says 100% cost incurred plus 10% service charges reimbursible.
How much reimbursment one should get in below case.
Five employee salary is USD 50000 per month
Social Security deducted 5000 per month
Net salary paid 45000 per month
Social Security deposited USd 5000 (employee contribution )
In Addtion to USD 6000 (Employeer / Company Contribution )
Now, Invoice raised to main contractor for reimbursment
Net Salary USD 45000
Social Security (employee) USD 5000
Scoial Security (Employer) USD 6000
Total USd 56000 plus 10% service charges.
Main contractor rejects the claim and says it suppose to be
Net Salary USd 45000
and Social security (Compnay Contribution) 6000
Total USD 51000 plus 10% service cahrges only re-imbursible.
Reason given employee contribution is already recovered from employee.
In this case whether 100% cost incurred by contractor re-imbursed by main contract or not?
Or what is the actual claim suppose to be?
How much reimbursment one should get in below case.
Five employee salary is USD 50000 per month
Social Security deducted 5000 per month
Net salary paid 45000 per month
Social Security deposited USd 5000 (employee contribution )
In Addtion to USD 6000 (Employeer / Company Contribution )
Now, Invoice raised to main contractor for reimbursment
Net Salary USD 45000
Social Security (employee) USD 5000
Scoial Security (Employer) USD 6000
Total USd 56000 plus 10% service charges.
Main contractor rejects the claim and says it suppose to be
Net Salary USd 45000
and Social security (Compnay Contribution) 6000
Total USD 51000 plus 10% service cahrges only re-imbursible.
Reason given employee contribution is already recovered from employee.
In this case whether 100% cost incurred by contractor re-imbursed by main contract or not?
Or what is the actual claim suppose to be?
Amol S Joglekar
(Expert)
07 December 2016
USD 56000 + 10 %
(The deduction of USD 5000 towards social security is in TRUSTEEship function.)
(The deduction of USD 5000 towards social security is in TRUSTEEship function.)
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