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    SARS & Tax

    ETI

    The Employment Tax Incentive is a monthly PAYE reduction for employers who hire South Africans aged 18–29 earning under R6,500.

    Full definition

    ETI (Employment Tax Incentive) is a government incentive introduced in 2014 that reduces an employer's monthly PAYE liability for each qualifying young worker. Qualifying employees are 18–29, South African citizens/refugees, earning between R2,000 and R6,500 per month, and hired on or after 1 October 2013. The incentive is claimed for up to 24 qualifying months per employee and can bring the effective employment cost down significantly for entry-level roles.

    See also

    PAYE
    Pay-As-You-Earn is the monthly income tax an employer withholds from each employee's salary and pays over to SARS.
    EMP201
    The monthly employer return to SARS declaring PAYE, UIF, SDL and ETI due for the payroll period.

    Automate ETI in your payroll

    Payroll Africa handles ETI calculations automatically for South African employers — SARS-aligned for 2026/27. From R90/month.

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    Let payroll handle ETI for you

    Payroll Africa calculates it automatically every month for South African employers — SARS-aligned, with payslips, EMP201 and IRP5 included.

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