Page 50 - GA Maclachlan Tax Guide 2024

■ The wage paid to an employee may not be less than the amount payable
by virtue of a wage regulating measure applicable to that employer (i�e� a
minimum wage) or if the amount of the wage payable to an employee is
not subject to any wage regulating measure, the amount of R2 000 per
month if the employee is employed for more than 160 hours in the month
(if the employee is employed for less than 160 hours in a month and is paid
remuneration in respect of those hours a percentage of R2 000 must be used)
■ An employee is a qualifying employee if the employee:
◆ is not an independent contractor
◆ is not less than 18 years old and not more than 29 years old at the end
of any month in respect of which the employment tax incentive is claimed
◆ was not employed by the employer before 1 October 2013
◆ is in possession of an identity card or is in possession of an asylum
seeker permit
◆ in relation to the employer, is not a connected person
◆ is not a domestic worker
◆ performs actual work in terms of a documented employment contract
◆ is not mainly involved in studying
◆ does not earn more than R6 500 (R6 000 before 1 March 2019) per month
The Minister of Finance designated special economic zones and industries in
respect which an employer will also qualify for the incentive�
The amount of the employment tax incentive in respect of a qualifying employee
is determined as follows:
■ During each month of the first 12 months, 75% of the monthly remuneration
of the employee if the employee’s remuneration is less than R2 000, R1 500
(R1 000 before 1 March 2022) if the employee’s remuneration is R2 000
or more but less than R4 500 and according to a formula if the employee’s
remuneration is R4 500 or more but less than R6 500�
■ During each of the 12 months after the first 12 months that the same
employer employs the qualifying employee, 37�5% of the monthly
remuneration of the employee if the employee’s remuneration is less than
R2 000, R750 (R500 before 1 March 2022) if the employee’s remuneration
is R2 000 or more but less than R4 500 and according to a formula if the
employee’s remuneration is R4 500 or more but less than R6 500�
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