Topic 2:Salary determination & Fringe benifits

Question 1

Link between salary determination and BCEA?

Answer 1

• BCEA sets out conditions that ensure fair labour practices
• BCEA regulates the min wage for different sectors
• BCEA outlines legalities such as overtime and hours of work that can affect salary

Question 2

Difference between piecemeal and time related ?

Answer 2

Piecemeal
- Paid according to the numner of items
- Workers are not paid on the time it takes but rather on the amount of products

Time related
- Workers paid on the amount of time spent on a task
- Workers are paid the same regardless of qualifications

Question 3

Examples of employee benifits?

Answer 3

• Medical Aid
• Pention
• Car

Question 4

Positives of fringe benifits?

Answer 4

• Improves productivity resulting in higher profitability
• Bussiness save money as fringe benifits are tax deductabile

Question 5

Negatives of fringe benifits?

Answer 5

• Additional costs to the business
• Admin costs increase as benifits need to be correctly recorded for tax purposes

Question 6

UIF as a compulsory benifit?

Answer 6

• Offers short term finacial support to employees if they become unemployed/ill
• Assists depandants of a contributing worker that has died
• Employers conribute 1% of the employees salary