Increase in employment tax incentive values from 1 March 2022
South Africa’s Minister of Finance announced an increase in the Employment tax incentive
with effect from 1 March 2022.
with effect from 1 March 2022.
The Taxation Laws Amendment Act of 19 January 2022 has amended the calculation of the employment tax incentive (“ETI”) monthly remuneration from 1 March 2022.
The ETI calculation formulae that are effective from 1 March 2022 are as follows:
Monthly remuneration: R0 to R1 999,99
First 12 months - 75% of monthly remuneration
Second 12 months - 37,5% of monthly remuneration
Monthly remuneration: R2 000 to R4 499,99
First 12 months - R1 500,00
Second 12 months - R750
Monthly remuneration: R4 500 to R6 499,99
First 12 months - R1 500 – (75% x (monthly remuneration – R4 500))
Second 12 months - R750 – (37.5% x (monthly remuneration – R4 500))
For more information in this regard, click here.
11/03/2022
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