Question

Mr. Arendse received a monthly basic salary increase of 6.3% and an increase of R300 in his Housing allowance. His employer stated that the increase in deductions on his UIF and Pension fund will not be more than R76.00 per month. Take the ceiling amount for UIF into consideration. Verify by means of calculations whether this statement is correct. Show all calculations. (10)

A) Perform the calculations
B) Ignore the statement
C) Rely on the employer's statement
D) None of the above

Answer 1

To verify the employer's statement, calculate the increase in deductions for Mr. Arendse's salary increase. If the increase is not more than R76.00, the statement is correct.

Step-by-step explanation:

To verify whether the employer's statement is correct, we need to calculate the increase in deductions for Mr. Arendse. Let's start with the basic salary increase. We'll multiply Mr. Arendse's current basic salary by 6.3% to find the increase. Then we'll calculate the increase in deductions for UIF and Pension fund by subtracting the previous deductions from the new deductions. If the increase is not more than R76.00, then the employer's statement is correct.

Step 1: Calculate the increase in basic salary:
Percentage increase in basic salary = 6.3%
Salary increase = 6.3% * current basic salary

Step 2: Calculate the increase in deductions:
Previous deductions = Deductions on UIF + Deductions on Pension fund
New deductions = Previous deductions + R76.00
Increase in deductions = New deductions - Previous deductions

If the increase in deductions is not more than R76.00, the employer's statement is correct. Otherwise, it is incorrect.