Youth wage subsidy gets a thumbs up

The Employment Tax Incentive Act, commonly known as the youth wage subsidy, which came into operation on the first day of 2014, has been given thumbs up by Jo’burg residents too. The act gives employers tax cuts in exchange as incentive for hiring young people and is believed to have created 120 000 jobs by far. Even though some anticipate that it will lead to the retrenchment of older workers, the majority believes it will be effective in reducing unemployment among the youth. UYANDA SIYOTULA spoke to Gauteng residents who gave it the go-ahead.

JanineJanine Gibbons, 66, Fairland

It is going to help the youth get jobs. I think it is a very good initiative because so many of our youthare unemployed. But from what critics have said, that old people are going to be retrenched, it is not as good because it means companies will hire a bunch of unskilled young people. It is difficult to say you are for or against it, but unemployment is a problem so we need it. The money isn’t much, but they are going to get skills that they need. But if it will mean that old people who have skills will be retrenched then it is not so great. If that is the only way though, so be it, because something needs to be done about the high rate of unemployment.


MattMatt van der Walt, 24, Pretoria

I do not quite understand it because I have not read anything about it in the media. I think it is good as long as there is a selective criteria that will be used. You cannot just take anyone. So if you take the best, and can learn some skills, then that is great. It also depends on which sector you training them for, because there is a shortage of engineers, so it will be good if they can be hired in those sectors. If it is done properly they should not retrench people, they must fill the vacancies that are there.



MandisiMandisi Magwazi, 40, Norwood

To me it does not make sense. It is just blinding other people. We need proper training programmes so that young people can be employed. Companies will employ people and pay them an amount that is too little, and at the same time get tax payers’ money. It is ridiculous. Why can’t they just hire them and let the companies pay them a good salary if there are jobs? So for me it is not good at all. We need to properly train the young and create more business opportunities. We also want to start our own companies because there are no jobs. So it is not a good way to fight unemployment at all.


DanahDanah Strydom, 54, Hyde Park

It is an opportunity for job market entrants to gain experience, really. I think it is good because it is an opportunity for young people to earn some income, even though it is not a lot. But they will gain experience, you know, a platform to jump forward. I think it is a better way of utilising tax payers’ money than the government has ever done. It is also good that companies are benefiting because then they will hire more young people than they otherwise would and the old will not lose jobs because companies do not want to lose skillful workers.


VincentVincent Solomons, Kensington, 23

I do not know. It can be good, I believe, as as long as it can help young people find work. The unemployment rate is very high, and there are no jobs. It is ridiculous how I struggled to get a job last year. It’s quite sad that I missed my chance to register but I would have voted for the DA. I think the ANC has gone a little offline so DA is a better option.


RidgeRidge Tawsand, 38, Fourways

I actually did not know what it is, but I think it is good because we have a growing young population and they are faced with no jobs. If we want South Africa to prosper then we need to give them jobs so they stay away from crime and stuff. It depends on how it is implemented. I think internships are another way to fight unemployment, but it sounds like an internship scheme so I think it is good. But the money is hard to live on. Some people spend that money on lunch. It is too little but it’s better than nothing, hey.