Violet Auma has been offered a job with Apple Electronics (K) Ltd., a foreign company dealing with distribution of
smart phones and computers in the East African region. She is due to report on 1 January 2016.
Her terms of employment provide for the following emoluments:
1. She would get a basic salary of Sh.450,000 per month effective from 1 January 2016.
2. The company would make the following additional payments to her per month:
- Home to office car allowance of Sh.28,500. However, she would be given the option of using a company car.
The car that would be allocated to her would be of 2500cc which the company would purchase at a cost of
Sh.3,500,000.
- House allowance of Sh.80,000 per month. However, the company gives her the option of moving to a
company house from the commencement of her employment. The house would be rented by the company at Sh.80,000 per month.
3. She would, like all other employees, enjoy the company's pension scheme into which the company would pay
Sh.25,000 monthly for her benefit. She would also have to contribute a similar amount into the scheme.
4. An end of the year bonus amounting to Sh.35,500 would be paid to her each year. She however would be given
the option of taking a gift of a phone from the company worth the same amount.
5. She would be eligible to be included into the company's attractive medical scheme which only covers
management staff. The amount of the benefit is capped at Sh.1,500,000 per year. She however has the option of a
free-for-all claim-based medical scheme operated by the employer. The scheme is capped at Sh.1,000,000 per
year.
Required:
Recommend the best option for Vilolet Auma based on the above information.
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