Employment Tax Incentive (ETI)

What is ETI?

ETI is an incentive that reduces PAYE payable when you hire qualifying young South African employees.

Think of it like this…

It’s a PAYE discount for creating youth jobs.

Why does it matter?

• Lowers monthly PAYE liability
• Encourages entry‑level employment
• Has eligibility rules (age, wage bands, employment dates)

Best practice

Apply ETI calculations through payroll software and keep proof of eligibility for audits.