The ETI is an incentive aimed at encouraging employers to hire young work seekers. It was implemented with effect from 1 January 2014. Millions of young South Africans are excluded from participating in economic activity, and as a result suffer disproportionately from unemployment, discouragement and economic marginalisation. High youth unemployment means young people are not gaining the skills or experience needed to drive the economy forward. This lack of skills can have long-term adverse effects on the economy.
In South Africa, the current lack of skills and experience as well as perceptions regarding the restrictiveness of labour regulations make some prospective employers reluctant to hire the youth. As a South African employer, you now have a great opportunity to boost the employment of young work seekers.
Companies are encouraged to double their existing BBBEE training budgets from 3% to 6% of payroll, of which 2.5% should be towards bursaries. Skills Development is now a priority element with a 25-point weighting. Including 5 bonus points. To avoid dropping a level in BEE status a company must achieve a minimum of 40% or 8 points of the target set out in the skills development scorecard excluding bonus points. 5% of Black individuals including unemployed individuals on Learnerships.
