Corruption and the Relation between gross vs. real net Salary


15-06-2023 04:18 PM
Dr. Osama Gazal

His Majesty King Abdullah II Ibn Al Hussein has advocated for the deployment of effective anti-corruption strategies since the beginning of the previous decade. While the first governmental reactions to the king's vision were revealed in 2011 with the launching of the EU-funded Twinning Project (no.2011/276-118), following which the government built a legal framework and established authorities, and implemented anti-corruption policies. Jordan's anti-corruption efforts are mainly in line with international standards to be one of the region's forerunners in the fight against this detrimental phenomenon. Therefore, Jordan's National Anti-Corruption Strategy aimed to achieve the following vision "Jordan has an effective anti-corruption apparatus founded on a trusting relationship between the public, private, and third sectors."

However, aside from the availability of resources and the wealth of society, the government's performance is the basis of society's contentment in any country, which can be judged by the level of the government management system's performance rather than the availability of resources themselves. Most of the services that citizens see daily demonstrate good government performance, such as providing sufficient and sustainable water for the country sectors, sewer systems, garbage collection, road maintenance, bus and other transportation services, libraries, and police and fire protection. They have a huge economic and social impact on the country.

They increase access to health and mental health care. They provide direct assistance to the elderly who are unable to care for themselves. The underperforming government delivers too little for too much money. Failures and breakdowns are a severe concern, if not already common. In addition, according to Klitgaard (2005) organizations that are not well aligned with their purpose, broken procedures for selecting leaders, and inefficient or perverse incentive systems are the deep causes of underperformance. U.S. Senator Daniel K. Akaka said, “A strong workforce comes from having the right people with the right skills in the right place at the right time. Only then will government operate in an effective, efficient, and economic manner.”. Therefore, poor performance can be related to different reasons lack of managerial efficiency and effectiveness. Chairpersons are typically appointed by bureaucrats or technocrats who are not from the managed sector.

The second half of the title is about the gross vs. net salary. We all think of comparing any prospects based on the total compensation, which is the Gross...but this is incorrect!! Employee's gross pay is what they earn before taxes, benefits, and other payroll deductions are deducted from their salary. Net pay, often known as take-home pay, is the amount left over after all withholdings are deducted. In Jordan, the Theoretical Net pay as an Average Monthly Net Salary (After Tax) equals 617.69 US Dollars. Far from theoretical definitions, the practical and logical comparison must incorporate various variables, which will surely reduce the real value of net income. Transportation, tension, time, effort, and respect in the workplace for your title, talents, and experiences, as well as your position. As a result, rather than calculating the theoretical net compensation, it is more sensible to look for indications to measure the real net salary.

The gap between the value of the real Net payment and the value of the gross payment is directly proportional to the degree of corruption in any country, with a higher difference between the value of the real net and the value of the gross salary. In third-world countries, with the existence of a high level of corruption, it's usual for 90% of employees to have a lower net pay than their employers believe. As a result, employers constantly seek more while providing less. Only employees with strong connections and who belong to dominant or effective groups with common interests can be covered by legally or illegally increasing their net income and putting their names in any committees or work teams to receive compensation for this! And ignoring others to stress them out, as well as telling them that the boss doesn't want to keep them, but rather wants to see them nervous and unhappy, saying that they aren't as excellent as the boss's closest employees or the strongest or effective groups at work.




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