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Employer Cost Calculator

Calculate the true cost to company (CTC) of employing staff in South Africa — including UIF, SDL, COIDA, and Employment Tax Incentive (ETI) savings.

Annual payroll over R500,000?
Skills Development Levy (SDL) of 1% applies above this threshold

Understanding the Employment Tax Incentive (ETI)

The ETI is a government incentive designed to encourage employers to hire young workers. Eligible employers can reduce their monthly PAYE payments to SARS by the ETI credit amount.

Who qualifies?

  • Employee aged 18–29
  • Monthly salary R2,000–R7,499
  • Employed for the first time
  • Must not be a domestic worker
  • Employer registered for PAYE

First 12 months

  • R2,000–R2,499: 60% of salary
  • R2,500–R5,500: R1,500/month
  • R5,500–R7,499: scales down
  • Max credit: R1,500/month
  • Annual saving: up to R18,000

Months 13–24

  • R2,000–R2,499: 30% of salary
  • R2,500–R5,500: R750/month
  • R5,500–R7,499: scales down
  • Max credit: R750/month
  • Annual saving: up to R9,000

The ETI is legislated to expire on 28 February 2029. Plan your hiring accordingly — employees hired now can still claim the full 24-month benefit if onboarded before March 2027.

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