28 March 2025 – The proposed amendments to the ETI Act in the 2025 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill will be effective 1 April 2025.
The amendments from 1 April 2025 are as follows:
Section 4(1)(b)(i) and (ii):
“(i) where the employee is employed and paid remuneration for at least 160 hours in a month, the amount of R2 500 (previously R2 000) in respect of a month; or
(ii) where the employee is employed and paid remuneration for less than 160 hours in a month, an amount that bears to the amount of R2 500 (previously R2 000) the same ratio as 160 hours bears to the number of hours that the employee was employed for and paid remuneration by that employer in that month.”
Section 6(g):
“(g) receives remuneration in an amount less than R7 500 (previously R6 500) in respect of a month”
Section 7:
The determination of ETI as per section 7 of the ETI Act from 1 April 2025 is as follows:
| Monthly remuneration | Formula
First 12 months |
Formula
Second 12 months |
| R0 — R2 499.99 | 60% of monthly remuneration | 30% of monthly remuneration |
| R2 500 — R5 499.99 | R1 500 | R750 |
| R5 500 — R7 499.99 | R1 500 — (75% x (monthly remuneration — R5 500)) | R750 — (37,5% x (monthly remuneration — R5 500)) |
Note: These amendments will apply for a period of 12 months provided Parliament pass the necessary legislation giving effect to the announcement in the national annual budget within that period of 12 months.
See the Employment Tax Incentive (ETI) webpage for more information.
