Worked examples of how much Employment Tax Incentive you can claim per qualifying employee, using the official formula. See our full ETI guide for eligibility rules.
R3,500 falls in the R2,000–R4,500 band — the flat-rate band.
R5,500 falls in the R4,501–R6,500 band — ETI reduces linearly.
Formula: (6,500 − remuneration) ÷ 2,000 × R1,500
R0 ETI — below the R2,000 minimum remuneration threshold, so no incentive applies regardless of age or other qualifying criteria.
R0 ETI — above the R6,500 ceiling, even if the employee is aged 18–29 and otherwise qualifies.
4 employees each earning R3,500/month, all in Year 1:
4 × R1,500 = R6,000/month reduction in the business's PAYE liability — with no reduction to any employee's take-home pay.
ETI is claimed on the EMP201, reducing the employer's PAYE payment directly. If the ETI claimable exceeds the month's PAYE liability, the excess rolls forward — see our ETI guide for the full claiming process.
No — ETI reduces the employer's PAYE liability to SARS; it has no effect on what the employee is paid.
The excess rolls forward to the next month's EMP201, and any remaining balance is settled at EMP501 reconciliation.
No — the employer must identify qualifying employees and declare the ETI amount on the EMP201; it isn't applied by SARS automatically.
TSS Payroll identifies qualifying employees and calculates the correct ETI amount automatically, every EMP201.
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