| (1) |
An employer is not eligible to receive the employment tax incentive in respect of an employee in respect of a month if the wage paid to that employee in respect of that month is less than— |
| (a) |
the amount payable by virtue of a wage regulating measure applicable to that employer; or |
| (b) |
if the amount of the wage payable to an employee by an employer is not subject to any wage regulating measure— |
| (i) |
where the employee is employed and paid remuneration for at least 160 hours in a month, the amount of R2 000 in respect of a month; or |
[Subsection (1)(b)(i) substituted by section 94 of the Taxation Laws Amendment Act, 2016 (Act No. 15 of 2016)]
| (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 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. |
[Subsection (1)(b)(ii) substituted by section 91(1)(a) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017)]
| (2) |
If an employer receives the employment tax incentive in respect of an employee despite not being eligible by reason of subsection (1), that employer must pay a penalty to the South African Revenue Service in an amount equal to 100 per cent of the employment tax incentive received in respect of that employee in respect of each month that the employer received the employment tax incentive. |
| (3) |
For the purposes of this section "wage regulating measure"’ means— |
| (b) |
a sectoral determination as contemplated in section 51 of the Basic Conditions of Employment Act, 1997 (Act No. 75 of 1997); or |
| (c) |
a binding bargaining council agreement as contemplated in section 31 of the Labour Relations Act, including where such agreement is extended by reason of a determination of the Minister of Labour in terms of section 32 of that Act. |
| (4) |
For the purposes of this section, ‘hours’ means ‘ordinary hours’ as defined in section 1 of the Basic Conditions of Employment Act, 1997 (Act No. 75 of 1997). |
[Subsection (4) inserted by section 91(1)(b) of Act No. 17 of 2017]
Protection of Businesses Act, 1978
