LSB2605
Assignment 1
Unique No:
Due 28 August 2025
, ASSIGNMENT 01
Due date: 28 August 2025
Scenario
Zanele is employed on a 12-month fixed-term contract, earning R30,000 per month. At
the end of the contract, she may receive a R15,000 performance bonus if she meets her
targets.
Question 1: UIF – total contributions due for 12 months (8 marks)
Rules applied
UIF contributions = 1% employee + 1% employer = 2% in total.
Contributions are capped at the UIF monthly ceiling, currently R17,712,
regardless of actual earnings.
Source: Unemployment Insurance Contributions Act and SARS PAYE Guide
2026 (“UIF liable amount” & “Obligation on the employer”).
Application to Zanele
Monthly salary = R30,000 → above UIF ceiling (R17,712).
Contribution calculation:
o Employee UIF = 1% × 17,712 = R177.12
o Employer UIF = 1% × 17,712 = R177.12
o Total monthly UIF = R354.24
Annual totals (12 months)
Employee = R177.12 × 12 = R2,125.44
Employer = R177.12 × 12 = R2,125.44
Grand total = R4,250.88
Assignment 1
Unique No:
Due 28 August 2025
, ASSIGNMENT 01
Due date: 28 August 2025
Scenario
Zanele is employed on a 12-month fixed-term contract, earning R30,000 per month. At
the end of the contract, she may receive a R15,000 performance bonus if she meets her
targets.
Question 1: UIF – total contributions due for 12 months (8 marks)
Rules applied
UIF contributions = 1% employee + 1% employer = 2% in total.
Contributions are capped at the UIF monthly ceiling, currently R17,712,
regardless of actual earnings.
Source: Unemployment Insurance Contributions Act and SARS PAYE Guide
2026 (“UIF liable amount” & “Obligation on the employer”).
Application to Zanele
Monthly salary = R30,000 → above UIF ceiling (R17,712).
Contribution calculation:
o Employee UIF = 1% × 17,712 = R177.12
o Employer UIF = 1% × 17,712 = R177.12
o Total monthly UIF = R354.24
Annual totals (12 months)
Employee = R177.12 × 12 = R2,125.44
Employer = R177.12 × 12 = R2,125.44
Grand total = R4,250.88
