The following information was taken from the time sheet of Miss Palm Royale for the week ended 6 October 2024.

Question

Day Hours worked

Monday 9

Tuesday 11

Wednesday 10

Thursday 11

Friday 9

Saturday 5

Sunday 5

A normal working week is 40 hours, from Monday to Friday. Normal overtime is remunerated at one and a half times, while double overtime is remunerated at twice the normal rate. The hourly rate of pay is R50. Saturday was a public holiday.



Miss Palm Royale contributes to the following funds:

Pension at 7,5% of his basic wage; the employer also contributes to this fund on a rand-for-rand basis.

Unemployment Insurance Fund at 1% of her basic wage.

PAYE at 18% of taxable income.

Medical aid at 10% of basic wages split between the employer and employee on a 60: 40 basis respectively.

Required

1. Calculate Miss Palm Royale’s net wage for the week ended 6 October 2024.

2. Fill in the table below. Do not put the Rand sign (R) and do not write the word hours or hrs in your answers. No spaces between your figures. Where necessary, round off to two decimal places.

Examples

R10 must be written as 10

R10,50 must be written as 10.50

Answer 1

To calculate Miss Palm Royale’s net wage for the week ended 6 October 2024, we will start by determining her earnings and deductions based on the information provided.

Step 1: Calculate Total Hours Worked

Total hours worked:

• Monday: 9 hours
• Tuesday: 11 hours
• Wednesday: 10 hours
• Thursday: 11 hours
• Friday: 9 hours
• Saturday: 5 hours (public holiday)
• Sunday: 5 hours

Total = 9 + 11 + 10 + 11 + 9 + 5 + 5 = 60 hours

Step 2: Determine Normal and Overtime Hours

• Normal working hours in a week = 40 hours
• Overtime hours = Total hours - Normal hours = 60 - 40 = 20 hours

Overtime Breakdown

• The first 10 hours of overtime (hour 41 to 50) are paid at 1.5x (normal overtime).
• The next 10 hours (hour 51 to 60) are paid at 2x (double overtime).

Step 3: Calculate Earnings

1. Basic Wage Calculation:

   • Basic wage = Normal hours × hourly rate = 40 × R50 = R2000

2. Overtime Calculation:

   • Normal overtime (1.5x):
     • 10 hours at R50 × 1.5 = R75
     • Total = 10 × 75 = R750
   • Double overtime (2x):
     • 10 hours at R50 × 2 = R100
     • Total = 10 × 100 = R1000

3. Total earnings: Total earnings = Basic wage + Normal overtime + Double overtime
   Total earnings = 2000 + 750 + 1000 = R3750

Step 4: Calculate Deductions

1. Pension Fund (7.5% of basic wage):
   • Employee contribution = 2000 × 0.075 = R150
   • Employer contribution = 2000 × 0.075 = R150
2. Unemployment Insurance Fund (1% of basic wage):
   • Contribution = 2000 × 0.01 = R20
3. PAYE (18% of taxable income):
   • Taxable income = Total earnings - Employee deductions = 3750 - 150 - 20 = R3580
   • PAYE = 3580 × 0.18 = R644.40
4. Medical Aid (10% of basic wages split):
   • Total Medical Aid Contribution = 2000 × 0.1 = R200
   • Employee portion = R200 × (40/100) = R80
   • Employer portion = R200 × (60/100) = R120

Step 5: Calculate Net Wage

Deductions = Pension + UIF + PAYE + Medical Aid
Deductions = 150 + 20 + 644.4 + 80 = R894.4

Net wage = Total earnings - Total deductions
Net wage = 3750 - 894.4 = R2855.6

Step 6: Fill in the Table

Here are the consolidated answers formatted as requested:

| Description | Amount | |----------------------------------|------------------| | BasicWage | 2000 | | NormalOvertime | 750 | | DoubleOvertime | 1000 | | TotalEarnings | 3750 | | PensionFund | 150 | | UIF | 20 | | PAYE | 644.40 | | MedicalAid | 80 | | TotalDeductions | 894.4 | | NetWage | 2855.6 |

Convert amounts to the required formatting:

• BasicWage: 2000
• NormalOvertime: 750
• DoubleOvertime: 1000
• TotalEarnings: 3750
• PensionFund: 150
• UIF: 20
• PAYE: 644.40
• MedicalAid: 80
• TotalDeductions: 894.40
• NetWage: 2855.60

Remember to use the table format without the Rand sign or the word hours in your answers.

Final Answers:

• 2000
• 750
• 1000
• 3750
• 150
• 20
• 644.40
• 80
• 894.40
• 2855.60