ETI Validation Rules

• Qualifying employees:
  An individual is a qualifying employee if he or she–
  • Has a valid South African ID, Asylum Seeker permit or an ID issued in terms of the Refugee Act;
  • Is 18 to 29 years old (please note that the age limit is not applicable if the employee renders services mainly inside a special economic zone (SEZ) to qualifying company as contemplated in section 12R of the Income Tax Act that carries on a trade within the SEZ;
  • Is not a domestic worker;
  • Is not a “connected person” to the employer;
  • Was employed by the employer or an associated person to the employer on or after 1 October 2013; and
  • Is paid the minimum wage applicable to that employer under a wage regulating measure or is paid the national minimum amount contemplated in the National Minimum Wage Act and not more than R7 500 remuneration. If there is no prescribed wage regulating measure or not subject to section 3 of the National Minimum Wage or exempt from the requirements of the National Minimum Wage Act, a wage of at least R2 500 (where the qualifying employee was employed for 160 hours in a month) must be paid.
• Qualifying period: The employee was employed on or after 1 October 2013.
• Employer not subject to wage regulating measures: The employee’s wage must be at least the minimum national wage or, if the employer is exempt from the national minimum wage, R2500 per month.
• Employer subject to wage regulating measures: The employee’s wage must not be less than the minimum wage prescribed by the relevant regulating measures.

The Monthly Calculated ETI amount per qualifying employee is within the prescribed legislated threshold:

• The monthly calculated ETI amount per qualifying employee is determined as follows, see the tables on the How does the ETI work webpage.

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