Cap. 6:07 INSOLVENCY No. 7/2018 (2) The taxed fees of the sheriff in connection with proceedings stayed in terms of section 20 must be regarded as costs of liquidation of the estate. (3) The costs of liquidation referred to in subsections (I) and (2) rank pari passu and abate in equal proportion, if necessary. 89 Application of free residue (I) The free residue of an insolvent estate must be applied in the first place to defray the costs of liquidation contemplated in section 88, but excluding the costs referred to in section 84(4). (2) In the second place the balance of the free residue must be applied to pay(a) to an employee who was employed by the debtor(i) any salary or wages, for a period not exceeding three months, due to an employee; (ii) any payment in respect of any period of leave or holiday due to the employee which has accrued as a result of his or her employment by the debtor in the year in which liquidation occurred and the previous year, whether or not payment thereof is due at the date of liquidation; (iii) any severance or retrenchment pay due to the employee in terms of any law, agreement, contract, wage-regulating measure or as a result of termination in terms of section 40; and (b) any contributions that were payable by the debtor, including contributions which were payable in respect of any of his or her employees, and which were, immediately prior to the liquidation of the estate, owing by the debtor, in his or her capacity as employer, to any pension, provident, medical aid, sick pay, holiday, unemployment or training scheme or fund, or any similar scheme or fund under any law or to such a fund administered by a bargaining or statutory council recognised in terms of the Labour Act [Chapter 28:01], and which does not exceed $750 in respect of any individual employee. (3) The claims contemplated in subsection (2)(a) may not exceed the amount of(a) $750 per employee in respect of subparagraph (i) and $750 in respect of subparagraph (iii); and (b) $250 per employee in respect of subparagraph (ii). (4) The Minister may amend an amount mentioned in paragraph (a) or subsection 2(b) by notice in the Gazette. (5) The claims referred to(a) in subsection (2)(a)(i) must be preferred to the claims referred to in subsections (2)(a)(ii) and (iii) and (2)(b) and must rank equally and abate in equal proportions, if necessary; (b) in subsection (2)(a)(iii) must be preferred to the claims referred to in subsections (2)(a)(ii) and (2)(b) and must rank equally and abate in equal proportions, if necessary; (c) in subsection (2)(a)(ii) must be preferred to the claims referred to in subsection (2)(b) and rank equally and abate in equal proportions, if necessary; (d) in subsection (2)(b) rank equally and abate in equal proportions, if necessary. 263