n Business Tax and Company Law Quarterly - Tax incentive for hiring young and less experienced citizens

Volume 5, Issue 2
  • ISSN : 2219-1585


Yet another piece of legislative change, this time in the form of an incentive: an employment tax incentive, promulgated by the Employment Tax Incentive Act 26 of 2013, which provides cash incentives to employers who employ young and low-earning South African citizens.

The ETI programme is effective 1 January 2014, and is applicable for two twelve-month cycles within a period commencing on 1 January 2014 and ending on 31 December 2016.
The ETI credits a 'qualified employer' with cash amounts depending on the level of monthly remuneration with a cap of R6 000. The minimum monthly wage required to tax advantage of the incentive is R2 000 or a wage approved in terms of a 'wage regulating measure'.
Qualifying employees must be aged between 18 and 29, subject to certain exclusions, such as domestic workers.

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