South Africa: Jobs Program Extends Employer Tax Subsidy 

The South African government has extended the Employment Tax Incentive (ETI) until 28 Feb 2029 — the scheme was due to end on 28 Feb 2019. Launched in 2014, the ETI provides employers with a temporary tax incentive for hiring young employees aged between 18 and 29 years and hiring employees of any age who work in special economic zones or in industries designated by the finance minister.

Employers can claim for the first 12 months of employment up to R1,000 for each employee earning a maximum salary of R4,500 per month, up from the previous cap of R4,000. For the following 24 months of employment, employers’ tax incentive is capped at R500 for eligible employees earning up to R4,500. 

Related Resources

• Taxation Laws Amendment Act No. 23 of 2018 (Official Gazette, 17 Jan 2019)
• Budget 2019 (South African Government)
• Information on ETI (South African Revenue  Service)