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A company's employee has a UIF Contribution of R320, which is 2% of their Gross salary. If their total deductions are R1 280 (8% of Gross salary), calculate their Gross and Net salary.

Accounting

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Answer

Gross salary

R16 000\text{R16 000}

Net salary

R14 720\text{R14 720}

Step-by-step solution

2 steps
  1. Calculate the Gross salary.

    The UIF Contribution of R320 represents 2% of the Gross salary.
    Let GSGS be the Gross salary.

    0.02×GS=R3200.02 \times GS = R320

    To find the Gross salary, divide the UIF Contribution by its percentage:

    GS=R3200.02GS = \frac{R320}{0.02} GS=R16 000GS = R16\,000
  2. Calculate the Net salary.

    The Net salary is calculated by subtracting the Deductions from the Gross salary.
    The Deductions are given as R1 280.

    Net salary=Gross salary−DeductionsNet\, salary = Gross\, salary - Deductions Net salary=R16 000−R1 280Net\, salary = R16\,000 - R1\,280 Net salary=R14 720Net\, salary = R14\,720

    The completed table for the omitted employee is:

    Gross salaryDeductionsNet salaryUIF Contribution
    R16 000R1 280 (8%)R14 720R320 (2%)

    The missing values are:
    Gross salary: R16 000\boxed{\text{R16 000}}
    Net salary: R14 720\boxed{\text{R14 720}}

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