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Home/Calculators/ETI Calculator

ETI Calculator

Calculate your Employment Tax Incentive (ETI) savings for hiring young workers aged 18-29. Up to R1,000/month per qualifying employee. Updated for 2026/2027.

Updated March 2026 · Current SARS rates

Qualification Check

Instantly check whether an employee qualifies for ETI based on age and remuneration thresholds

Year 1 & Year 2 Rates

Calculate the incentive for both the first 12 months (up to R1,000) and months 13-24 (up to R500)

Multi-Employee Totals

Enter the number of qualifying employees to see your total monthly and annual PAYE reduction

ETI Calculator

Calculate the Employment Tax Incentive for your employees

R

Employee's gross monthly salary

Must be 18-29 to qualify

Calculate total PAYE reduction for multiple qualifying employees

Ready to Calculate

Enter employee details to calculate your ETI savings

ETI by Salary Level

First 12 months: incentive up to R1,000/month

ETI Qualification Requirements

Both the employer and the employee must meet specific criteria for the ETI to apply

Employee aged 18-29

The employee must be between 18 and 29 years old at the end of the month for which the ETI is claimed

Remuneration ≤ R6,500/month

The employee's monthly remuneration must not exceed R6,500. Above this amount, no incentive is available

Valid South African ID

The employee must have a valid South African identity document or asylum seeker permit

Not a domestic worker

Domestic workers employed in a private household do not qualify for the ETI

Not related to the employer

The employee must not be a connected person in relation to the employer (e.g., family members, shareholders)

Employer registered for PAYE

The employer must be registered with SARS for PAYE (Pay-As-You-Earn) and not have been non-compliant

No displacement of existing employees

The employer must not have displaced an existing employee to hire the qualifying employee

ETI formula summary:

R2,000 - R4,500: 50% of amount above R2,000 (sliding up)

R4,500 - R6,500: Tapers from R1,000 down to R0 (sliding down)

Maximum: R1,000 per month per qualifying employee

ETI Calculator FAQs

Common questions about the Employment Tax Incentive in South Africa

The ETI is a government incentive that encourages employers to hire young workers aged 18 to 29. It works by reducing the amount of PAYE tax the employer must pay to SARS, effectively lowering the cost of employing young people. The incentive can be up to R1,000 per month per qualifying employee in the first 12 months.
The ETI is claimed by reducing the PAYE amount on your monthly EMP201 return submitted to SARS. There is no separate application form. Simply calculate the ETI for each qualifying employee and deduct it from your total PAYE liability. If the ETI exceeds your PAYE liability, the excess is carried forward.
If the employee earns more than R6,500 per month, no ETI incentive is available for that employee. The incentive is specifically designed for lower-income employees to encourage entry-level job creation. The ceiling of R6,500 applies to the employee's monthly remuneration.
The ETI is only available for the first 24 months of employment. After the employee has been employed for 24 months, no further incentive can be claimed for that specific employee. However, you can claim ETI for new qualifying employees you hire.
No, the ETI does not reduce the employee's salary in any way. The employee receives their full remuneration as agreed. The incentive only reduces the employer's PAYE liability to SARS. It is a benefit to the employer, not a deduction from the employee's pay.

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Important Disclaimer

Accounter does not provide accounting, tax, business or legal advice. This calculator has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.