22Sep
2013

The Employment Incentive Act

The Employment Incentive Act, no 26 of 2013 will take effect on 1 January 2014.

Applies to: All Employers who employ “Qualified Employees”.

Impact: Financial

The Act will encourage private employers to employ young workers by providing a tax incentive to employers, with government sharing the costs of such employment for a maximum of two years under certain conditions. This tax incentive can also be used to provide jobs to the many matriculants and other school leavers who will be entering the labour market. Soon after the Special Economic Zones Bill is enacted, the incentive will also support employers in such zones, if the zone is designated as eligible by the Minister of Finance. Though not applicable initially, the Minister of Finance may also consider extending the incentive to cover workers in certain approved industries.

The Employment Incentive Act, no 26 of 2013 will take effect on 1 January 2014 – PDF