LSB2605 Assignment 1 Answer Key - Semester 2 |DUE 28 August 2025|

LSB2605
Assignment 1

Semester 2
DUE 28 August 2025

, ASSIGNMENT 01

Due date: 28 August 2025

What the scenario says

Zanele is on a 12-month fixed-term contract at R30,000 per month with a R15,000
bonus at the end if targets are met.



1) UIF: total contributions due for the full 12 months (8)

Rules:

• UIF = 1% from the employee + 1% from the employer (so 2% in total), but only
up to the UIF monthly ceiling.

• The current UIF monthly ceiling is R17,712. So, even if someone earns more
than that, UIF is calculated only on R17,712 per month.

• These rules come from the Unemployment Insurance Contributions Act and the
SARS PAYE Guide (“UIF liable amount” & “Obligation on the employer” sections).

Apply to Zanele:

• Her monthly salary (R30,000) is above the ceiling (R17,712).

• So, each month:

o Employee UIF = 1% × 17,712 = R177.12

o Employer UIF = 1% × 17,712 = R177.12

o Total per month paid to the Fund = R354.24

• Over 12 months:

o Employee total = R177.12 × 12 = R2,125.44

o Employer total = R177.12 × 12 = R2,125.44

o Grand total (employee + employer) = R4,250.88