1. The Employment Tax Incentive in SA Standing Committee on Finance
9 November 2016

2. Introduction The ETI as a policy option Labour Law reform and the ETI
Policy recommendations of NEDLAC Task Team
29 November 2018

3. The ETI as a policy option
Reasons for considering a wage subsidy in SA:
Counter the high social and economic costs of unemployment;
Improve the chances of targeted workers and reduce risk associated with hiring;
Access to experience and to the labour market improved;
Balance the policy options available within a mix of interventions.

4. Labour law & the ETI 2014-15 Labour law reform:
Amendments to LRA, BCEA & EEA
New Employment Services Act
Common thread - regulation of non-standard employment
Main amendments to LRA extend protection to employees placed by temporary employment services (labour brokers), employees on fixed term contracts and part-time employees
LRA (as amended) applies to all employers who may claim the ETI.

5. Policy recommendations of NEDLAC Task Team
Recommendation by Government:
The employment tax incentive be extended for two years;
The employment tax incentive be extended with a limit on claims by employers for all qualifying employees at R20 million for any year.

6. Descriptive Statistics of ETI Claims and Jobs

7. Policy recommendations cont.
Recommended extension to ETI should be viewed in context of the following:
Initial indication of generally positive impact;
Continued high rate of unemployment in SA labour market;
Weak economic growth forecasts;
Possibility of further monitoring and evaluation.

8. Thank you.
QUESTIONS?