The cleint is paying to the consultant at the rate of $9,500 per month. As per the contract clause, the consultant is intitled to have adjustment rate after the 13 th calender month its involvement in the remuneration earned from that month onward. Remuneration Adjustment will be based on statistics on annual inflation provided by National Central Bank of the country where the consultant is working. Average Adjustment Index for the year is 11.3.
Two formula provided, Either Rf = Rf0 x If / I f0
Or Rf = Rf0 x [0.1 + 0.9 If / If0]
Where Rf is the adjusted remuneration, Rf0 is the remunerationpayable to consultant, If is the official index for salariesin the country for the first month for which the adjustment is supposed to have effect and If0 is the official index for salaries in the country for the month of the date of the contract.
Question: - Are these two formula give the same Adjusted Remuneration?
If yes, what is the adjusted remuneration figure?
If not, what are the adjustment remuneration figure?
