Guides · Updated October 2026
Employment Tax Incentive (ETI): who qualifies?
A plain-language summary of Employment Tax Incentive eligibility rules for South African employers and employees, and how the ETI reduces your PAYE.
What is the ETI?
The Employment Tax Incentive encourages employers to hire young work-seekers. Qualifying employers reduce the PAYE they pay over to SARS on the EMP201; the employee's pay does not change.
Employer rules (summary)
- Registered for PAYE and tax compliant.
- Not a government entity or excluded public body.
- Must not displace existing employees to claim the incentive.
Employee rules (summary)
- Usually aged 18 to 29 (age limits differ in Special Economic Zones and designated industries).
- Holds a valid SA ID, asylum-seeker permit or refugee ID.
- Earns below the monthly ETI remuneration ceiling and at least the minimum wage.
- Not a domestic worker or a connected person to the employer.
- Can be claimed for a maximum of 24 qualifying months per employee.
Check the current amounts
The remuneration bands and monthly ETI amounts are set by SARS and can change. Confirm the current figures on sars.gov.za before relying on them.
This guide is general information, not tax advice. Always confirm current rules and dates with SARS.