ETI – LEGISLATION BREAKDOWN IN SIMPLE TERMS

4. Qualifying employee in terms of ETI
The following tests must be satisfied to determine if the specific employee, of the eligible employer who complies with the wage regulating measures as prescribed, is a qualifying employee –
a) Age test:
(i) Is the employee between 17 and 30 (not less than 18 and not more than 29) years old on the last day of the specific month; OR
(ii) Does the employee render service in a special economic zone (SEZ) where a qualifying company carries on trade; OR
(iii) Is the employee employed by an employer in a designated industry
AND
b) Identity document: Do the employee have an RSA identity card/book OR asylum seeker permit OR Refugees identity document
AND
c) Is the employee NOT a connected person to the employer
AND
d) Is the employee not a domestic worker
AND
e) Was the employee employed by the employer or associated employer after 30 September 2013
AND
f) The employer complies with the Wage regulating measure test in respect of the specific employee
AND
g) The employee received remuneration in an amount LESS than R6 500 in respect of the specific month
Note:
• Although f) and g) above is part of the qualifying criteria in section 6, these tests normally eliminate the employee when the provisions of section 4 (wage regulating measure) and section 7 (calculation of ETI) are applied.
• If the employee was employed by an associated employer [see e) above], then the employer must continue with the month count in respect of the qualifying months of the employee at the associated employer. The employer may not restart at 1.