The Employment Tax Incentive Act no 26 of 2013 will come into effect on 1 January 2014. This Act aims to create jobs for young workers and those in special economic zones.
To encourage private employers to employ young workers, the incentive will function by decreasing the amount of PAYE tax that is payable to SARS for a two year period for every qualifying employee hired after 1 October 2013.
Qualifying employees must be between the ages of 18 and 29 years and have been hired on or after 1 October 2013, earn above the prescribed minimum wages (if applicable) but below R6 000 per month. If there is no prescribed minimum wage, the monthly salary must be at least R2 000 per month.
Early in 2014 SARS will publish on its website documentation that will provide further details to assist employers in understanding how the tax incentive will work and how they can claim the incentive in practice.
https://www.globalbusiness.co.za/download/5114/
https://www.globalbusiness.co.za/download/5116/