Page 51 - Profmark Tax Guide 2025 Digital

■ 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 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 R7 500 (R6 500 before 1 April 2025) per month
The Minister of Finance designated special economic zones and industries in
respect which an employer will also qualify for the incentive�
From 1 April 2025 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, 60% of the monthly remuneration
of the employee if the employee’s remuneration is less than R2 500, R1 500
if the employee’s remuneration is R2 500 or more but less than R5 500 and
according to a formula if the employee’s remuneration is R5 500 or more but
less than R7 500�
■ During each of the 12 months after the first 12 months that the same
employer employs the qualifying employee, 30% of the monthly
remuneration of the employee if the employee’s remuneration is less than
R2 500, R750 if the employee’s remuneration is R2 500 or more but less
than R5 500 and according to a formula if the employee’s remuneration is
R5 500 or more but less than R7 500�
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