Employment Tax Incentive (ETI)
Qualifying employees, qualifying wage and how ETI reduces your PAYE liability.
What ETI is
The Employment Tax Incentive reduces the PAYE you pay over to SARS when you employ qualifying young South Africans. The employee's take-home pay is unaffected.
Qualifying employee
- Aged 18 to 29 (no age limit in a Special Economic Zone)
- Has a valid South African ID, asylum seeker or refugee permit
- Not a connected person to the employer
- Not a domestic worker
- Employed on or after 1 October 2013
Qualifying wage
The employee must earn at least the applicable minimum wage and below the monthly wage ceiling. ETI is calculated on a sliding scale over 24 qualifying months, at a reduced rate in months 13 to 24.
Claiming
Claimed ETI reduces the PAYE amount on the EMP201. Unclaimed ETI can be rolled over within a reconciliation period, and is refundable on the bi-annual reconciliation.