How this calculation works
Apply the first rate to sales up to the threshold and the upper rate only to the excess. A zero threshold selects one flat first rate on all sales. Add base pay for total gross earnings.
A worked example
R100 000 sales with 5% on the first R50 000 and 8% on the next R50 000 gives R6 500 commission before tax.
Assumptions & limitations
- This is a marginal two-tier structure, not a retroactive tier applying the top rate to all sales. Enter contract-defined eligible sales. Returns, chargebacks, caps, VAT and payroll deductions are excluded.
