Employee Tax Incentive (ETI)
The Employee Tax Incentive is an incentive for employers aimed at encouraging them to hire young work seekers. It was made effective from 1 January 2014.
Millions of South African youths are excluded from economic participation, which means they are vulnerable to unemployment and economically marginalization. High unemployment in this bracket results in an unskilled workforce that fails to drive the economy forward.
Some prospective employers are hesitant to hire youth because of this lack of skills and experience. The ETI aims to change this by providing an incentive to employers for training young work seekers.
Improve your BEE Scorecard through the SARS Employee Tax Incentive
Benefits to Employers
Who Qualifies for ETI?
- Employers registered for PAYE
- Employers NOT in national, provincial or local sphere of government
- No public entities listed in Schedule 2 or 3 of the PFMA
- No municipal entities