Employment Tax Incentive (“ETI”)
During the February 2022 budget speech, the Minister of Finance announced a 50% increase in the (ETI) value which came into effect on the 1st of March 2022.
The ETI came into effect on the 1st January 2014 and ends on the 28th of January 2029. The incentive is aimed at encouraging employers to hire young and less experienced employees for them to gain the necessary skills and work experience to further their careers, thereby promoting towards the national job creation agenda. The ETI effectively reduces the overall cost of employment to an employer by allowing a reduction in the montlyPay-as-you-earn (PAYE) liability.
To qualify for an ETI claim, the employer should be a qualifying employer who employs qualifying employees. Below is amongst others the requirements for both a qualifying Employer and Employee.
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