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Gwen Koen's Salary Scale: Calculate Gwen's monthly salary in her first year, her annual salary in her third year, and her monthly increase in her sixth year.

Mathematics

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Answer

2.1

R16,985.14\text{R16,985.14}

Step-by-step solution

5 steps

Here are the solutions to the questions:

Gwen Koen's Salary Scale

1. Calculate Gwen's monthly salary in her first year of employment.

Step 1: Identify the annual salary for the first year.
Gwen's starting annual salary is R156,000.

Step 2: Calculate the monthly salary.

Monthly Salary=Annual Salary12=R156,00012=R13,000\text{Monthly Salary} = \frac{\text{Annual Salary}}{12} = \frac{R156,000}{12} = R13,000

Gwen's monthly salary in her first year is R13,000\boxed{\text{R13,000}}.

2. What will her annual salary be in her third year of employment?

Step 1: Calculate the annual salary for each year.

  • Year 1: R156,000R156,000
  • Year 2: R156,000+R16,500=R172,500R156,000 + R16,500 = R172,500
  • Year 3: R172,500+R16,500=R189,000R172,500 + R16,500 = R189,000 The increment of R16,500 applies as her salary is still below R205,500. Her annual salary in her third year will be R189,000\boxed{\text{R189,000}}.

3. What will her monthly increase be in her sixth year of employment?

Step 1: Determine the annual salary progression to find the increment applicable in the sixth year.

  • Year 1: R156,000R156,000 (Increment R16,500R16,500)
  • Year 2: R172,500R172,500 (Increment R16,500R16,500)
  • Year 3: R189,000R189,000 (Increment R16,500R16,500)
  • Year 4: R205,500R205,500 (Reached the first threshold, next increment is R18,900R18,900)
  • Year 5: R205,500+R18,900=R224,400R205,500 + R18,900 = R224,400 (Increment R18,900R18,900)
  • Year 6: R224,400+R18,900=R243,300R224,400 + R18,900 = R243,300 (Increment R18,900R18,900)

Step 2: Calculate the monthly increase based on the annual increment for the sixth year.
The annual increase in her sixth year is R18,900.

Monthly Increase=Annual Increase12=R18,90012=R1,575\text{Monthly Increase} = \frac{\text{Annual Increase}}{12} = \frac{R18,900}{12} = R1,575

Her monthly increase in her sixth year will be R1,575\boxed{\text{R1,575}}.

4. How many years would she work before she reaches R243,300?

Step 1: Refer to the salary progression calculated in question 3.

  • Year 1: R156,000
  • Year 2: R172,500
  • Year 3: R189,000
  • Year 4: R205,500
  • Year 5: R224,400
  • Year 6: R243,300 She reaches R243,300 in her 6th year\boxed{\text{6th year}} of employment.

Neil Brydon's Salary Advice: Calculations

Information:

  • Annual Basic Salary: R198,600
  • Monthly Basic Salary: R198,60012=R16,550\frac{R198,600}{12} = R16,550
  • Production Bonus (November): 40% of basic salary =0.40×R16,550=R6,620= 0.40 \times R16,550 = R6,620

Part 2.1· 3 steps

Complete the Salary Advice of Neil Brydon on 30 November 2021.

  1. Calculate Gross Salary.

    Gross Salary=Monthly Basic Salary+Production Bonus\text{Gross Salary} = \text{Monthly Basic Salary} + \text{Production Bonus} Gross Salary=R16,550+R6,620=R23,170\text{Gross Salary} = R16,550 + R6,620 = R23,170
  2. Calculate Deductions.

    • Pension Fund: 8% of basic salary =0.08×R16,550=R1,324= 0.08 \times R16,550 = R1,324
    • UIF: 1% of basic salary =0.01×R16,550=R165.50= 0.01 \times R16,550 = R165.50
    • Medical Aid: R1,200R1,200
    • SARS: PAYE: 16% of taxable income.
      • Taxable Income = Gross Salary - Pension Fund (assuming pension is tax-deductible)
      • Taxable Income = R23,170−R1,324=R21,846R23,170 - R1,324 = R21,846
      • PAYE = 0.16×R21,846=R3,495.360.16 \times R21,846 = R3,495.36
    • Total Deductions: R1,324+R165.50+R1,200+R3,495.36=R6,184.86R1,324 + R165.50 + R1,200 + R3,495.36 = R6,184.86
  3. Calculate Net Salary.

    Net Salary=Gross Salary−Total Deductions\text{Net Salary} = \text{Gross Salary} - \text{Total Deductions} Net Salary=R23,170−R6,184.86=R16,985.14\text{Net Salary} = R23,170 - R6,184.86 = R16,985.14

    Neil Brydon's Net Salary for November 2021 is R16,985.14\boxed{\text{R16,985.14}}.

Part 2.2· 2 steps

Calculate the total salary expense of the business with regards to Neil Brydon, inclusive of all benefits for November 2021.

  1. Identify the employee's gross earnings.

    • Monthly Basic Salary: R16,550R16,550
    • Production Bonus: R6,620R6,620
    • Total Gross Earnings: R16,550+R6,620=R23,170R16,550 + R6,620 = R23,170
  2. Calculate the employer's contributions

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