How to qualify for youth employment incentive
Fin24

How to qualify for youth employment incentive

2013-11-01 20:15

Cape Town - The incentive to hire young people comes into effect on January 1, 2014 and will last for two years, according to the employment tax incentive bill tabled in Parliament on Thursday.

In his recent mini budget speech Finance Minister Pravin Gordhan said the revised bill is intended to encourage job creation in special economic zones and to provide work to more young people.

All private employers registered to pay employees' tax to the South African Revenue Service (Sars) qualify, reported Sake24.

Employers will be able to deduct the incentive amount for which they qualify from the employees' tax they would have to pay to Sars.

Employees who qualify must:


- Be between 18 and 29 years old;

- Work for an employer in a special economic zone as indicated by the finance minister in the Government Gazette;

or

- Work in an industry which has been indicated by the finance minister in consultation with the ministers of labour and trade and industry;

and

- Have an identity document or an asylum seeker permit.

This incentive is not applicable to domestic workers.

During the first year the amount for which could be qualified is half of what the employee earns for employees who earn R2 000 per month or less and R1 000 for employees earning between R2 000 and R4 000.

For employees earning between R4 000 and R6 000 the amount declines, according to a formula, the higher the wage is.

For example, R500 can be claimed for someone earning R5 000. For someone earning R6 000 or more nothing can be claimed.

During the second year the incentive declines by half. An employer is not allowed to receive the incentive after January 1 2017.

In terms of the bill, the finance minister has to disclose information about the scheme twice a year.

Business Leadership South Africa (BLSA) welcomed the scheme and said it would reduce the risk and cost of hiring people seeking work for the first time and who are ill prepared due to poor skills and training. still unprepared it.

For more business news in Afrikaans, see Sake24.com

Comments
  • Daniel Prinsloo - 2013-11-01 20:42

    Just another quick solution...

  • Timothy - 2013-11-01 21:23

    Work for an employer in a special economic zone? Anybody know what this refers to?

      Mally Gee - 2013-11-02 12:47

      I believe that I will compromise my business in employing the gluttonous self-serving youth of today –vs– reducing my tax by the incentive amount. No, my choice is not to employ even one, thanks all the same Pravin!

  • Etienne Labuschagne - 2013-11-01 21:32

    Smell an election coming ......

  • Antionette Nene Rivisi - 2013-11-01 23:53

    Yet another way of seducing SA's youth to vote for ANC... Why now? You ain't gettting my vote, none of you all ( opposition parties) deserves my precious vote... Nice try

      Utopian Indigent - 2013-11-02 07:04

      This is a DA idea, Antoinette, I hope they make that fact known.

  • Sefetse Khalifah Mashoene - 2013-11-02 00:31

    Baswa Ba Tlo Shoma ka 2014..

  • Pawel Poniatowski - 2013-11-02 02:24

    Wow how Racist is this???

  • Kamogelo Majoe - 2013-11-02 03:08

    since this scheme is meant to last for 2yrs only, what is going to happen after 2 yrs?

      Nyathi Gelenja - 2013-11-02 16:39

      just wait

  • johnrwicks - 2013-11-02 05:20

    Is this some form of a joke?? This is no incentive to hire the youth! What about university and college graduates? Is R4,000 a month what you put in years of study for? And that's only if you're prepared to work in the ass end of nowhere. Give me the Mauritius model where the government CONTRIBUTE 50% of a youth's salary for a year and the youth's salary is not taxed at all, that's an incentive for me as an employer. This plan will contribute to the reduction of youth unemployment by approximately 0.001% and that's a generous estimate...Another ploy by the ANC to garner the votes of the uneducated youth and demonstrates that they are clearly under the whip of cosatu.... Another meaningless proposal Proudly Brought to you by the ANC.

      Mally Gee - 2013-11-02 12:49

      Yes John, the entire system will be outbred in one month.

      Tumelo Raphael - 2013-11-11 15:36

      yes man,the ANC see the danger of loosing the vote for 2014,so it is promising jobs that cant do and cover unemployed youth and graduation people.so they have to talk things which is mannerd and consideration.lets fight poverty against youth and graduated,those who have job skilled must be empowerd buy the DTI and department,must start small and grow big.

  • Utopian Indigent - 2013-11-02 07:03

    This is a good idea in theory. It is also the first time government has acknowledged that there should be no distinction between races in entry-level employment of the very young. Maybe they are coming to their senses about that. Apply and let SARS bust their brains over which industry you're in....

  • Andrew Mostert - 2013-11-02 07:20

    Seriously? After all that debate, that's it? We need much better politicians.

  • Prince Ramalia - 2013-11-02 11:45

    Even asylum seeker?, this must be a joke, so we as SA citizens will pay foreigners with our tax?

  • Chris Van Der Walt - 2013-11-02 12:51

    Engineered to win votes. That's all. And it would ultimately be at the detriment of older employees - who are already weighing heavily on our tax system.

  • Gilberto Jikijela - 2013-11-02 15:33

    DA supported this too. Viva EFF!

      Gilberto Jikijela - 2013-11-02 15:53

      If it wasn't for votes, an intelligent leader liker Zille would never had supported such a stupid initiative. I'm glad that Malema opposed this. Down with explotation. Viva EFF!

  • Joseph Machusi - 2013-11-02 18:05

    you people are well mature to gather youth votes for next year only,i knw you only their votes thats all.imagine you getting some one decision that's wrong.

  • Mntozofika Ndlovu - 2013-11-03 05:03

    This is confussing what is the youth ? And what is a plain about others ?

  • Pumelele - 2013-11-03 06:08

    looks a bit tricky, but It's a workable scheme.big ups to the ANC led government

  • Tarryn Smith - 2013-11-03 07:39

    "All private employers registered to pay employees' tax to the South African Revenue Service (Sars) qualify" When earing these low salaries the employee does not even fall into the income bracket to pay PAYE tax, so I don't see that there is any insentive.

  • Tumelo Raphael - 2013-11-11 15:42

    ANC doesnt have a problem,the leader ship of ANC are those whom make the ANC get corupt,former president Thabo Mbeki said that,the leader of the AFRICAN NATIONAL CONGRESS is in danger with the leader ship of it,so lets think and know were we come from and elect new leader ship again,lets joint hands together and say long live ANC long live.

      Jabu Dlamini - 2014-03-16 04:10

      Mtakwethu kutheni ungabhali ngolwimi wakho ngoba esisilungu usibalayo sibolile. Hinting i leader ship, r u 4 real

  • Craig Huggett - 2014-02-06 10:06

    Does anyone else think this is a slap in the face of the tax paying workforce? I realise that technically the PAYE deduction belongs to the government as soon as it is deducted on my payslip and they can do with it what they deem appropriate; but seriously, they then give it back to my employer to incentivise them to employ a younger workforce. That is my hard earned tax money been given to my employer who is probably already underpaying me. I'm sorry, this is not a system based on fairness or equality. Thoughts please?

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