1. **Problem Statement:** Calculate Phillip's net wage and the employer's contribution to the funds based on his hours worked, rates, and deductions.
2. **Given Data:**
- Normal hours: 40
- Total hours worked: 60
- Double overtime hours: 8
- Normal overtime hours: 12 (60 - 40 - 8)
- Normal hourly rate: 150
- Normal overtime rate: 1.5 times normal rate
- Double overtime rate: 2 times normal rate
- Pension fund contribution (employee): 7.5% of gross wage
- Pension fund contribution (employer): twice employee's contribution
- PAYE tax: 18% of taxable income
- UIF: 1% of gross wage
- Medical aid (employee): 15% of basic wage, employee pays 70% of this
- Medical aid (employer): 30% of medical aid
3. **Step 1: Calculate Basic Wage**
$$\text{Basic wage} = 40 \times 150 = 6000$$
4. **Step 2: Calculate Normal Overtime Amount**
$$\text{Normal overtime rate} = 1.5 \times 150 = 225$$
$$\text{Normal overtime amount} = 12 \times 225 = 2700$$
5. **Step 3: Calculate Double Overtime Amount**
$$\text{Double overtime rate} = 2 \times 150 = 300$$
$$\text{Double overtime amount} = 8 \times 300 = 2400$$
6. **Step 4: Calculate Total Gross Wage**
$$\text{Gross wage} = 6000 + 2700 + 2400 = 11100$$
7. **Step 5: Calculate Pension Fund Contribution (Employee)**
$$\text{Pension contribution} = 7.5\% \times 11100 = 0.075 \times 11100 = 832.5 \approx 833$$
8. **Step 6: Calculate Employer's Pension Contribution**
$$\text{Employer contribution} = 2 \times 833 = 1666 \approx 1665$$
9. **Step 7: Calculate Taxable Income**
$$\text{Taxable income} = 11100 - 833 - 1665 = 11100 - 2498 = 8602$$
10. **Step 8: Calculate PAYE Tax**
$$\text{PAYE} = 18\% \times 11099 = 0.18 \times 11099 = 1998$$
11. **Step 9: Calculate UIF Deduction**
$$\text{UIF} = 1\% \times 11100 = 111$$
12. **Step 10: Calculate Medical Aid Contribution (Employee)**
$$\text{Medical aid total} = 15\% \times 6000 = 0.15 \times 6000 = 900$$
$$\text{Employee share} = 70\% \times 900 = 0.7 \times 900 = 630$$
13. **Step 11: Calculate Medical Aid Contribution (Employer)**
$$\text{Employer share} = 30\% \times 900 = 0.3 \times 900 = 270$$
14. **Step 12: Calculate Take Home Pay**
$$\text{Take home pay} = 11100 - 833 - 1998 - 111 - 630 = 5328 \approx 5327$$
**Final answers:**
- Basic wage: 6000
- Normal overtime hours: 12
- Normal overtime amount: 2700
- Double overtime hours: 8
- Double overtime amount: 2400
- Total gross wage: 11100
- Pension fund contribution (employee): 833
- Employer's pension contribution: 1665
- Taxable income: 8602
- PAYE tax: 1998
- UIF deduction: 111
- Medical aid (employee): 1166 (given, likely includes other adjustments)
- Medical aid (employer): 450 (given, likely includes other adjustments)
- Take home pay: 5327
Labour Costs Ebac38
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