At the moment, the ETI is granted to employers for each ‘qualifying employee’ who:
"The amendments have aligned the ETI with the National Minimum Wage Act (NMWA) in order to enforce compliance," says Menet Hamel, HR Consultant and ODETDP practitioner at Global Business Solutions. "In addition, the salary cap for employees who earn more than the National Minimum Wage (NMW) has increased from R6,000 to R6,500."
Another important change in the amendments is the narrowing of the definition of a ‘qualifying employee’. Where previously this term referred to all employees who either earned a minimum wage or between R2,000 and R6,000, now ‘qualifying employees’ are only those who are employed by qualifying companies which are defined under Section 12R of the Income Tax Act.
"The proposed amendments will go a long way towards ensuring that those employees who were previously disempowered now have the opportunity to earn better wages," concludes Hamel.