The State President announced in the State of the Nation Address on February 11, 2022, that the requirements of the Employment Tax Incentive Act will be reviewed. This will have a direct impact on payroll suppliers. The Employment Tax Incentive Act has been successful in addressing the high levels of unemployment in the country, particularly for young people aged 18 to 29 years. However, the take-up of the ETI project could have been better if the requirements were simpler and the risk to employers was lower. PAGSA has requested a re-think of the troublesome aspects of the ETI Act since 2015, and proposed changes that will significantly simplify the requirements. The 2022 State of the Nation Address stated that the value and criteria for participation in the Employment Tax Incentive will be increased to encourage hiring by smaller businesses. The Budget proposals on February 23, 2022, will provide more detail. Once put into effect, this proposal will result in changes to payroll systems and ETI administration processes, but it is welcome news for both payroll suppliers and employers in the ETI project. For more information, visit https://www.pagsa.org.za/2023/06/10/nf-2022-05-sona-eti-review/.