Youth Wage Subsidy finally came LiveJan 2, 2014 5099 view(s)
As per the decided schedule, the Employment Tax Incentive Bill i.e. the Youth Wage Subsidy came into effect at Wednesday midnight - as per the reports.
The President had signed the Employment Tax Incentive Act earlier in December 2013 to make it effective from the starting new year itself, but it will be applicable to the workers who are hired on or after October 1 this year.
The government hopes that the law will surely create jobs in some special economic zones, remove unemployment to some extent also. According to the terms and conditions of the subsidy, the employers will be benefitted with tax incentive to hire young workers for a maximum of two years, yes along with some agreement.
Few days back COSATU had protested against this wage subsidy and its replacement, because once they believed that this Employment Tax Incentive Bill would create differences in the labour market and in turn among the new workers and the older ones. They at once threatened that they will follow a general strike against this but nothing such happened so far.
Iraj Abedian, the famous Economist said that there are rare chances for this labour market to cause instability. Infact we can expect that the businesses will plan something better and the benefits due to these plans. But this may take some time to come into effect and provide expected benefits. Especially the wage subsidies will require the time period of around 9 to 12 months before they create effect in the labour market.
Further details regarding how the scheme will work to provide employment to the workers will be provided by SARS. They will publish all the details in the form of documentation on its website.
The Treasury said that “Experience is a must for the youths to gain proper skills and for better future opportunities .” Also Government will work with the private sector to promote the employment opportunities for the workers and enhance their development skills, specially for the youths with less work experience.
In order to increase these employment skills and the levels of the employment, an existing learnership allowance will be provided in the Income Tax Act and the employment tax incentive.