https://www.engineeringnews.co.za

Employment Tax Initiative extended to February 2029

24th October 2018

By: Marleny Arnoldi

Deputy Editor Online

     

Font size: - +

The National Treasury has given the go-ahead for an extension of the Employment Tax Initiative (ETI) to February 2029.

The sunset date would have been February 29, 2019.

Treasury reviews the viability and impact of the ETI, which was introduced in 2013 to draw additional young workers into employment and provide young workers with work experience, yearly. ETI shares the cost of hiring between employers and government.

Tax-compliant employers in the formal, private sector are entitled to pay as you earn (PAYE) tax reductions if they hire a qualifying candidate for ETI. ETI candidates must be between 19 and 29 years of age and earn up to a maximum of R6 000 a month.

These workers are often people lacking skills and tertiary education to otherwise enter the job market, since employers most often hire experienced, skilled candidates. The ETI incentivises companies to hire people that they would not necessarily have considered.

ETI claimed against PAYE in 2013/14 was R143 362, R2.4-million in 2014/15, R3.9-million in 2015/16 and R4.5-million in 2016/17. The preliminary figure for 2017/18 is R4.4-million.

Research done by Treasury in 2016 confirmed that 56% of employers surveyed confirmed that the ETI had contributed to an increase in the number of young people hired.

Edited by Creamer Media Reporter

Comments

Showroom

Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 
M and J Mining
M and J Mining

M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.071 0.12s - 157pq - 2rq
Subscribe Now