Employment Tax Incentive Bill
29 October 2013Routledge Modise
The Employment Tax Incentive Bill will come into effect on 1 January 2014, however, claims for the incentive will be backdated to 1 October 2013. The Bill offers employers a tax incentive for employing people aged 18 to 29. There has been much media coverage relating to the criticism of the Bill by COSATU that alleges that the Bill will lead to cheaper labour and threatens the position of older permanent workers.
The purpose of the Bill is to encourage employment creation and counter the high rates of unemployment. It also aims to provide young people entering the job market with greater chances of employment and thereby obtaining work experience.
Employers should be aware of the incentives that now arise in relation to the employment of staff between the ages of 18 to 29.