, LSB2605 Assignment 1 (COMPLETE ANSWERS)
Semester 2 2025 - DUE 28 August 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
ABC (Pty) Ltd employs Zanele on a fixed-term contract for 12
months and pays her a salary of R30,000 per month. They also
agree to pay her a bonus of R15,000 at the end of the contract if
she meets certain targets during her employment.
1. Calculate the total amount of Unemployment Insurance Fund
(UIF) contributions that will be due during the entire term of the
contract. (8)
Step 1: UIF contribution rules
1. UIF is calculated at 2% of remuneration (1% employee + 1%
employer).
2. UIF applies up to the remuneration ceiling of R17,712 per
month (2024/2025 threshold).
3. Bonuses are included in remuneration but are also subject to the
same monthly ceiling.
Step 2: Determine monthly UIF on salary
Zanele earns R30,000 per month.
This is above the ceiling (R17,712), so UIF is calculated on
R17,712 only.
Total UIF per month=2%×17,712=354.24
Semester 2 2025 - DUE 28 August 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
ABC (Pty) Ltd employs Zanele on a fixed-term contract for 12
months and pays her a salary of R30,000 per month. They also
agree to pay her a bonus of R15,000 at the end of the contract if
she meets certain targets during her employment.
1. Calculate the total amount of Unemployment Insurance Fund
(UIF) contributions that will be due during the entire term of the
contract. (8)
Step 1: UIF contribution rules
1. UIF is calculated at 2% of remuneration (1% employee + 1%
employer).
2. UIF applies up to the remuneration ceiling of R17,712 per
month (2024/2025 threshold).
3. Bonuses are included in remuneration but are also subject to the
same monthly ceiling.
Step 2: Determine monthly UIF on salary
Zanele earns R30,000 per month.
This is above the ceiling (R17,712), so UIF is calculated on
R17,712 only.
Total UIF per month=2%×17,712=354.24
