Page 59 - Profmark BSA Guide 2025

Unemployment Insurance Fund (UIF)
The Unemployment Insurance Act and Unemployment Insurance Contributions Act
applies to all employers and workers, with the following exceptions: workers working
less than 24 hours a month for an employer, learners, public servants, foreigners
working on contract, workers who earn only commission.
Employment Tax Incentive (ETI)
The employment tax incentive was instituted in order to encourage employment
creation for the youth (i.e. employees between the ages of 18 and 29 years) and the
incentive will come to an end on 28 February 2029.
If an employer is eligible to receive the employment tax incentive in respect of a
qualifying employee in respect of a month, that employer may reduce the employees’
tax payable by that employer with the amount of the incentive.
The main requirements to qualify for this incentive are as follows:
■ The taxpayer must be registered for the purposes of the withholding and payment
of employees’ tax.
■ 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 500 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 500 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 endof
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 asylumseeker
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

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