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The Employment Tax Incentive Act comes into effect
- Published on 7 Jan 2014
- HR Pulse News Desk
The Employment Tax Incentive Act, also known as the youth wage subsidy, came into effect on 2 January, reports The Sowetan. This piece of legislation is a significant step towards decreasing unemployment as it it offers employers incentives to hire people between 18 – 29.
According to The Sowetan, economist Iraj Abedian said the act was unlikely to cause instability in the labour market in the short term.
"We can expect the businesses to begin to plan... [With regard to] the benefits that they can get, it will take some time so it's without a doubt not going to have an immediate effect. Typically, wage subsidies of this nature take up to nine or 12 months before they take effect in the labour market."
Download a one-page comprehensive guide to the ETI, developed by Ian Hurst from Paymaster, here.
