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Tax Incentive Act signed into law

The Employment Tax Incentive Act aims to create jobs and provide relevant skills to the youth.

President Jacob Zuma signed the Employment Tax Incentive Act into law on 18 December. Picture:GCIS.

JOHANNESBURG - Government has announced that the Employment Tax Incentive Act will take effect in January.

President Jacob Zuma signed the bill into law on Wednesday.

Initially known as the youth wage subsidy bill, treasury says the incentive will encourage employers to hire young job seekers.

But trade unions are vigorously opposed to the law.

The South African Revenue Service (Sars) Adrian Lackay says information about the incentive will be made available from next month.

"People can contact Sars and will be guided as to what they need to do on their monthly payroll submissions. Basically, if you employ young people within designated age groups you will qualify for tax benefits."

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