Assignment X2 Q2.9 (iv)

Discussion in 'SP4' started by Snowy, Nov 20, 2009.

  1. Snowy

    Snowy Member

    The solution says:
    "However, although the higher paid will see the biggest actual increase in money terms, the lower paid will feel the impact of a flat percentage increase more."

    1. What is this solution referring to, the rate of contribution increase?

    2. If it does refer to the contribution rate, then does this mean that the lower paid will be burdened more?
     
  2. Gresham Arnold

    Gresham Arnold ActEd Tutor Staff Member

    Hi Snowy

    1) Yes

    2) It depends on what you mean by "burdened more".
     

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