LSB2605 Assignment 1 (COMPLETE ANSWERS) Semester 2 2025 – DUE 28 August 2025; 100% correct solutions and explanations.

, LSB2605 Assignment 1 (COMPLETE ANSWERS) Semester
2 2025 – DUE 28 August 2025; 100% correct solutions and
explanations.
QUESTION 1: Calculate the total amount of Unemployment
Insurance Fund (UIF) contributions that will be due during the
entire term of the contract.
1. Zanele earns a monthly salary of R30,000.
2. UIF contributions are calculated at 2% of remuneration (1%
employee + 1% employer), subject to the monthly earnings
ceiling of R17,712.00 (as per the Unemployment Insurance
Contributions Act 4 of 2002, section 6(1); SARS Guide for
Employers in respect of UIF, 2023/24, p.10).
3. Since Zanele’s monthly remuneration of R30,000 exceeds the
ceiling of R17,712, UIF contributions are limited to the
maximum ceiling.
4. UIF contribution per month = 2% × R17,712 = R354.24
(employee R177.12 + employer R177.12).
5. Contract period = 12 months.
o Total UIF contribution = R354.24 × 12 = R4,250.88.
6. The bonus of R15,000 is excluded from UIF as it is not part of
“remuneration” subject to UIF (Unemployment Insurance
Contributions Act 4 of 2002, Schedule 1; SARS Guide
2023/24, p.12).
Final Answer: The total UIF contributions due for the entire 12-
month contract is R4,250.88.
References
 Unemployment Insurance Contributions Act 4 of 2002, Section
6(1), Schedule 1.