Students at the University of North West. (Photo: Hannelie Coetzee, MCSA)
Cape Town - A youth employment tax incentive aimed at
encouraging firms to employ young work seekers will shortly be tabled for
consideration by parliament.
Finance Minister Pravin Gordhan who delivered his Budget
Speech on Wednesday stressed that it’s not a wage subsidy and that there is a
need to share the costs of expanding job opportunities by government and the
The Budget Review says the tax incentive will be part of a
package of measures aimed at boosting opportunities for young work seekers.
Governments' existing approach to supporting employment
growth focuses on training, skills, development, labour market activation and
short-term public employment.
Programmes in support of these objectives include sector
education and training austerities, further education and training colleges,
small enterprise support, the Industrial Policy Action Plan, the expanded
public works programme and the community work programme.
The Review says the introduction of the tax incentive, which
takes into account the concerns of organised labour, will help young people
enter the labour market, gain valuable experience and access career
Protection provided by existing labour legislation, combined
with oversight by the SA Revenue Service and the Department of Labour, will
A similar tax incentive will be made available to eligible
workers of all ages within special economic zones.
* Visit our
2013 Budget section for full coverage
of Finance Minister Pravin Gordhan's National Budget speech.