Employment Tax Incentive (ETI) > Qualifying Employees

ETI may only be claimed for qualifying employees. This article outlines the criteria for qualifying employees, and how this is determined on the system.

Criteria

An individual is a qualifying employee if they:

  • have a valid South African ID, Asylum Seeker permit or an ID issued in terms of the Refugee Act;
  • are 18 to 29 years old*;
  • were employed by the employer or an associated person to the employer on or after 1 October 2013;
  • are paid the minimum wage applicable to that employer or as prescribed in the Minimum Wage Act and not more than R6 500 remuneration;
  • are not a domestic worker; and
  • are not a connected person to the employer.

All of the above requirements must be met before you are eligible to claim ETI for an employee.

*Please Note:

An employee’s age must be determined at the end of each month for which the ETI is being claimed. Therefore, an employee will start qualifying in the month that they turn 18 and will stop qualifying during the month that they turn 30.

For example, an employee who turns 18 on 24 September won’t qualify yet in August but will qualify in September. Also, an employee who turns 30 on 11 November will still qualify in October but won’t qualify in November.

Criteria Checks

Each of the criteria from above is either checked automatically by the SimplePay system or needs to be manually checked by the employer.

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