ITC JANUARY 2022 SUGGESTED SOLUTION PAPER 1 PART II SAICA

 ITC JANUARY 2022 SUGGESTED SOLUTION

PAPER 1 PART II

Paper 1 part II 9 © SAICA 2022

Part (c) With reference to section 2 only – (ii) identify other key factors that could impact the minimum hourly rate for supervisors.

Answer

The provided document is a suggested solution for Part (c)(ii) of the SAICA ITC January 2022 exam, which asks for other key factors that could impact the minimum hourly rate for supervisors.

The solution lists thirteen factors to consider, including:

• Tax implications and currency risk associated with payments.

• Repatriation of profits and the use of a tiered rate structure for different levels of hours worked.

• Staff expectations and morale, which may require additional allowances.

• The impact of travel and exhaustion on productivity.

• Local labor laws, union demands, and overtime rules.

• Analysis of the local labor market and competitors' pricing.

• Additional costs such as travel and accommodation, and potential future wage increases.

The document notes that a candidate only needed to provide four of these factors to earn the maximum marks for this sub-question.