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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › June. 17 MFP
Sir in part a .. political issue .. possible implications are to increase in labour cost of 5% .. due to requirements to match the deduction of employee .. why this has been increased by specific 5% ..
See under paragraph in question called ‘Pension reform’. Employees will have to pay 5% into a fund and this will be matched by the employer.
Sir this increase in labour cost is due to the matching requiremnt or due to the 5% gross pay in to the pension fund ..
Please elaborate .. i m not getting it
Employees pay 5% of their gross pay and the company has to match that, so company wage expense is up 5%.