ETI: How Your Business Can Benefit from Youth Employment
South African businesses face the dual challenge of remaining cost-efficient while also investing in future-ready talent. The Employment Tax Incentive (ETI) offers a smart solution, encouraging companies to hire young workers while gaining significant tax relief.
What Is the ETI and Why Should It Matter to You?
The ETI is a government-backed tax incentive designed to help employers hire South Africans between 18 and 29 years old by subsidising a portion of their wages through PAYE reductions. It’s not only a cost-saving strategy, it’s a powerful way to address youth unemployment and inject fresh energy into your workforce.
Young Talent Is a Growth Asset for Businesses
Hiring young people means hiring adaptability, digital fluency, and untapped potential. Today’s youth are fast learners, naturally tech-savvy, and eager to grow. When nurtured, they can drive innovation, support digital transformation, and energise your team culture.
How the ETI Helps Improve Your Cash Flow
Employers claim the ETI by reducing their monthly PAYE liability, improving liquidity without changing employee wages. Businesses can apply this incentive for up to 24 months per qualifying employee, with no cap on the number of employees claimed for.
Avoid the Common Pitfalls of ETI Implementation
Mistakes in ETI claims often stem from poor record-keeping, incorrect remuneration definitions, or failing to meet the qualifying criteria. Working with experienced accountants can prevent compliance issues and help you maximise the benefits responsibly.
Partnering with Experts to Optimise ETI Claims
Professional tax advisors ensure that your ETI submissions are accurate and aligned with current regulations. They can guide you through audits and reporting while helping you stay focused on growth, not paperwork.
