Required to; 1 Calculate the weekly wage per employee (excluding annual bonus). 2 Calculate the total annual cost to the company for all employees working at IPN. 3 Calculate the hourly recovery rate.
Ideal Prepaid Namibia (IPN) is well established company that specialises in offering prepaid
solutions to the Namibian market. The company has five employees and their labour policy is
listed as below:
Basic salary= $5 000 per month
Normal working hours = 40 hours per week (five days at eight hours a
day); 52 weeks per year
Public holidays per annum= 9 days
Annual leave = 4 weeks
Idle time = 10% of available time
Annual bonus = 1 month basic salary received at year end
Housing subsidy = $3 000 per quarter
Deductions;
PAYE = 15% of taxable income
Medical aid = 10% of gross on a 2:3 basis between
organisation and employee
SSC(social security) = 3% of gross on a 50:50 basis between
organisation and employee
Pension fund = 7.5% of basic for which the organisation is liable
for 50% of the contribution
Required to;
1 Calculate the weekly wage per employee (excluding annual
bonus).
2 Calculate the total annual cost to the company for all employees
working at IPN.
3 Calculate the hourly recovery rate.
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