Youth wage subsidy ‘an incentive scheme’

The youth wage subsidy to companies has been replaced by a youth employment incentive scheme, which means companies employing young people will pay less tax.

Finance Minister Pravin Gordhan told journalists ahead of his Budget speech in Parliament this morning that the keyword was “cost-sharing” between government and the private sector when it came to getting young people to work.

The agreement on the youth employment incentive package is set to be signed by government, business and labour in the negotiating forum Nedlac soon, according to Gordhan.

The incentive package was, according to the finance minister, “a key result of the good work (over) the past nine months”.

In 2010 he announced R5 billion would be set aside as a youth wage subsidy, but labour union federation Cosatu said this was unacceptable as this would result in older workers losing their jobs because young workers would be cheaper to employ.

“The tax incentive takes into consideration Cosatu’s concerns,” Gordhan said.

According to the Budget Review document tabled by Gordhan in the National Assembly today, this tax incentive complements the training programmes in place already.

The incentive would be “aimed at encouraging firms to employ young work seekers” to “help people enter the labour market, gain valuable experience and access career opportunities”.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Lockdown For
DAYS
HRS
MINS
Voting Booth
Would you choose to continue working from home after the coronavirus lockdown if given the option?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, it's much better for me
40% - 6934 votes
No ways! I can't wait to get back to the office
12% - 2027 votes
A mixture of both would suit me best
48% - 8340 votes
Vote
USD/ZAR
14.56
(-0.2)
GBP/ZAR
20.03
(+0.0)
EUR/ZAR
17.35
(-0.1)
AUD/ZAR
11.11
(-0.2)
JPY/ZAR
0.13
(+0.1)
Gold
1,736.80
(-0.4)
Silver
25.10
(-0.6)
Platinum
1,181.72
(-1.9)
Brent Crude
62.95
(-0.4)
Palladium
2,654.83
(+0.5)
All Share
66,674
(-0.8)
Top 40
60,947
(-0.8)
Financial 15
12,136
(+0.1)
Industrial 25
86,832
(-0.8)
Resource 10
67,781
(-1.2)
All JSE data delayed by at least 15 minutes Iress logo