Youth employment subsidy has been ‘positive’ and should be extended
University of Cape Town (UCT) academics who in the initial stages were tentatively doubtful about the likely success of the employment tax incentive, are "cautiously positive" that it has improved the employment of young workers. In a submission on the incentive, the UCT development policy research unit’s Prof Haroon Bhorat and Amy Thornton recommended that it should be extended, as proposed by the Treasury. The Treasury has proposed to extend the incentive — which was introduced in January 2014 and expires at the end of December — for another two years. It has also proposed a R20m cap on claims per employer. The scheme can be claimed for workers aged between 18 years and 29 years who earn less than R6,500 per month. The proposal was the subject of public hearings on Wednesday by Parliament’s standing committee on finance. Bhorat and Thornton cautioned in their submission to the committee that all the evidence was not yet available on the effectiveness of the incentive, but based on...
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