Employment Tax Incentive (ETI)

The Employment Tax Incentive (ETI) is an incentive that was launched by SARS with the aim of encouraging employers to hire young job seekers. It reduces the cost of hiring young people by reducing the amount of PAYE owed by the employer to SARS without affecting the employees’ wages

Who qualifies as an employee?

An employee is a person;

1. Employed on or after 1 October 2013.
2. No less than 18 and no more than 29 years old in the month the ETI is claimed.
3. That has a South African ID or an asylum seeker permit.
4. Paid a wage that is not less than the minimum wage for that sector (or R2 000 if there is no minimum wage).
5. Paid remuneration that is less than R6 000 per month
6. Permanently employed
7. Non-permanent employed (‘casuals’ or ‘temps’)
8. That is a Seasonal worker
9. That is a Fixed-term contractors
10. That is a Learner in terms of a learnership agreement (those that are employees).