Cape chamber supports youth wage law

The Employment Tax Incentive Act came into effect on Wednesday.

FILE: Unemployed youths gather at the Union Buildings in Pretoria on 10 September to protest in support of the Youth Wage Subsidy. Picture: Govan Whittles/EWN.

CAPE TOWN - The Cape Chamber of Commerce on Thursday said it fully supports the implementation of the Youth Wage Subsidy.

The grant, also known as the Employment Tax Incentive Act, came into effect on Wednesday.

The act is aimed at alleviating youth unemployment by offering employers incentives to hire young people.

Members of Parliament (MPs) passed the bill, despite opposition from various groups, including the Congress of South African Trade Unions (Cosatu) - an affiliate of the tripartite alliance.

The bill was then signed into law by President Jacob Zuma.

The chamber's Michael Bagraim said, "We think it's one very big step towards getting more employment in South Africa and in particular, in the Cape.

"We believe the subsidy shows that our government has recognised youth unemployment as a major problem."