Youth unemployment is a challenge faced globally, leaving developing, low-income countries the most vulnerable. Recent estimates put South Africa’s unemployment rate at 26.5% for the overall population, with youth aged between 15 and 34 years accounting for 63.5% of those unemployed.

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A remuneration policy is a powerful tool for driving your broader business strategy if it continually adapts in tandem with your business’ needs. As your company continually evolves, presenting new opportunities and challenges, your objectives will change. The outcomes required from employees will also consequently evolve.

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Lower levels of education and being situated in areas with limited access to adequate infrastructure and services continually stifle South African youth’s social mobility and delay their entrance into the job market. The government’s Employment Tax Incentive (ETI) initiative, implemented on 1 January 2014, aims to encourage employers to hire young, inexperienced job seekers. Through a cost-sharing mechanism with government, it aimed to reduce the cost of hiring and upskilling youth.

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Socio-economic inequality and inadequate education are chronic issues that have fuelled high unemployment rates among South African youth.This continually translates into further socio-economic exclusion, a floundering economy and lower tax revenues for the government in the future. The Employment Tax Incentive (ETI) initiative, implemented in 1 January 2014, was established by government encourage employers to hire young, inexperienced job seekers while their wages are unaffected.

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Truth 01: Pay Matters

With over 45 years’ collective experience in the payroll environment, we have grown to appreciate the far-reaching implications payroll management has on employees and businesses alike. It affects individual livelihoods and collective bottom-lines every day. We never lose sight of that.

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