Statistics show that about 50% of South Africa’s young people under the age of 25 are unemployed and the unemployed youth account for about 30% of total unemployment. The Employment Tax Incentive effectively shares the costs of certain categories of employment between the Government and employers.
The Employment Tax Incentive Legislation will start from January 2014 for an initial period of 3 years, after which the legislation will be revised, depending on the success. Any tax incentive amount owing to the employer and which has not been claimed will be forfeited on the 31st December 2016. The Employment Tax Incentive calculation will be automatically added on the Payroll system in use, and all payroll systems should be updated before doing the January 2014 payroll.
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