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‘Youth wage subsidy faces obstacles’

The DA says a Nedlac report on the issue has not been finalised.

The DA has given the Youth Wage Subsidy the thumbs up but Cosatu remains opposed to it.

CAPE TOWN - Concerns have been raised that a draft bill intended to give effect to the youth wage subsidy will face several obstacles in Parliament.

The policy, which was announced by President Jacob Zuma in 2010, was met by fierce opposition from the Congress of South African Trade Unions (Cosatu).

It was then referred to the National Economic Development and Labour Council (Nedlac).

Cosatu argues the subsidy will not solve youth unemployment.

In the meantime, Cabinet has approved the employment tax incentive bill for public comment.

The draft law aims to create conditions conducive to bringing young job seekers into the economy.

The bill will be discussed in Parliament on Tuesday.

Democratic Alliance (DA) Member of Parliament Tim Harris is worried the bill will face a number of obstacles.

"Nedlac has not concluded discussing the policy. They've had it for three years. They haven't written a final report. Until that report is available, it's not clear if [national] treasury can go ahead with this."