Sure, let's go through the solution step by step.
### Question 1: On what amount (net income or gross income) is UIF based and deducted?
The UIF contribution is calculated based on the gross income. The gross income in this scenario is given as R2090.00 per month.
### Question 2: Detailed Breakdown of the Deductions and Net Income
#### 1. Calculate the pension fund deduction
- 15% of the salary is allocated to the pension fund.
- Pension fund deduction = 15% of R2090.00
- Pension fund deduction = 0.15 R2090.00 = R313.50
#### 2. Calculate the medical plan deduction
- 5% of the salary is allocated to the medical plan.
- Medical plan deduction = 5% of R2090.00
- Medical plan deduction = 0.05 R2090.00 = R104.50
#### 3. Calculate the UIF (Unemployment Insurance Fund) contribution
- UIF is 1% of the gross income.
- UIF contribution = 1% of R2090.00
- UIF contribution = 0.01 * R2090.00 = R20.90
#### 4. Calculate the net income
To find the net income, we need to subtract the total deductions (pension, medical plan, and UIF) from the gross income.
- Total deductions = Pension deduction + Medical plan deduction + UIF contribution
- Total deductions = R313.50 + R104.50 + R20.90 = R438.90
- Net income = Gross income - Total deductions
- Net income = R2090.00 - R438.90 = R1651.10
So the net income after all the deductions is R1651.10.
### Summary of Results
1. UIF Based on: Gross income (R2090.00 per month).
2. Detailed Deductions:
- Pension Fund Contribution: R313.50
- Medical Plan Contribution: R104.50
- UIF Contribution: R20.90
- Net Income: R1651.10
These results should provide a clear understanding of how the deductions are made from the salary to arrive at the net income.
