Youth Month: how investment in our youth can boost your business

Lower tax breaks for learnerships: Know your learner’s NQF levels
June 30, 2021
Learnerships keep disability from dwarfing big dreams
June 30, 2021

Youth Month: how investment in our youth can boost your business

June is widely celebrated as Youth Month and with the financial challenges our youth are now facing, it is certainly worth considering appointing young people in your business. The Government has introduced several incentives for businesses that appoint youth. Consider the following two.

The first is the Employee Tax Incentive (ETI). ETI allows a business to withhold an amount of up to R1 000 per month per youth from Pay as You Earn (PAYE). This may result in an amount of R12 000 per youth per year that your business can benefit from, compliments of SARS, with the added plus of having more hands-on deck to help grow your business. “Youth” insofar ETI goes means any person between the 18 and 29 years of age.

The second is the Youth Employment Service (YES) initiative which afford businesses the opportunity to improve their BEE levels by appointing a number (or set target) of YES youth in the business for a 12-month period and to go on to ensure that a percentage of these YES youth also secure permanent employment in the business following the initial 12-month period. In this instance you have another opportunity to increase your operational capacity while also improving your BEE level. The “YES Youth” referred to here, are “Black People” between the ages of 18 and 35.

The above-mentioned initiatives not only financially justify your investment in our country’s youth, but will also warm your heart knowing that you made a significant contribution to the future of our country.

Contact Danie Krige at daniek@trainingportal.co.za or call him on 051 492 0300.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE).

We use cookies to improve your experience on our website. By continuing to browse, you agree to our use of cookies
X