, LSB2605 Assignment 1 (COMPLETE ANSWERS) Semester 2 2025
– DUE 28 August 2025 ;100% trusted ,comprehensive and complete
reliable solution with clear explanation
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)
1. Total UIF Contributions Over 12 Months (8 marks)
Calculation Method
1. UIF Contribution Rate
UIF contributions are 2% of monthly remuneration, split equally:
o Employee contributes 1%,
o Employer contributes 1% (total = 2%).
2. UIF Earnings Ceiling
Since 1 June 2021, UIF contributions are capped at a monthly
earnings ceiling of R17,712 or R212,544 annually.
3. Monthly UIF Contribution (Each Party)
1% of R17,712 = R177.12 each (employee and employer).
Total per month = R177.12 + R177.12 = R354.24.
– DUE 28 August 2025 ;100% trusted ,comprehensive and complete
reliable solution with clear explanation
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)
1. Total UIF Contributions Over 12 Months (8 marks)
Calculation Method
1. UIF Contribution Rate
UIF contributions are 2% of monthly remuneration, split equally:
o Employee contributes 1%,
o Employer contributes 1% (total = 2%).
2. UIF Earnings Ceiling
Since 1 June 2021, UIF contributions are capped at a monthly
earnings ceiling of R17,712 or R212,544 annually.
3. Monthly UIF Contribution (Each Party)
1% of R17,712 = R177.12 each (employee and employer).
Total per month = R177.12 + R177.12 = R354.24.
