Page 60 - Nexia SAB&T Business in South Africa Guide 2024

■ is not mainly involved in studying.
■ does not earn more than R6 500 (R6 000 before 1 March 2019) per
month.
The Minister of Finance designated special economic zones and industries in
respect which an employer will also qualify for the incentive.
The amount of the employment tax incentive in respect of a qualifying employee
is determined as follows:
■ During each month of the first 12 months, 75% of the monthly remuneration
of the employee if the employee’s remuneration is less than R2 000, R1 500
(R1 000 before 1 March 2022) if the employee’s remuneration is R2 000
or more but less than R4 500 and according to a formula if the employee’s
remuneration is R4 500 or more but less than R6 500.
■ During each of the 12 months after the first 12 months that the same
employer employs the qualifying employee, 37.5% of the monthly
remuneration of the employee if the employee’s remuneration is less than
R2 000, R750 (R500 before 1 March 2022) if the employee’s remuneration
is R2 000 or more but less than R4 500 and according to a formula if the
employee’s remuneration is R4 500 or more but less than R6 500.

Learnership Allowances
An annual and completion allowance of R40 000 may be claimed by the
taxpayer for learnerships NQF qualifications from levels 1 to 6, and R20 000 for
learnerships NQF qualifications from levels 7 to 10, and a completion allowance
of R20 000. The deduction claimable for disabled learners is R60 000 or
R50 000 for both annual and completion allowances.
Where a learnership is terminated before a period of 12 full months the employer
will be entitled to a pro rata portion of the annual allowance, regardless of the
reason for the termination of the learnership. The completion allowance for a
learnership of 24 months or more will be based on the number of consecutive
12 month periods completed × the above annual allowance amount.

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