The Introduction of Youth Wage Subsidy under the Employment Tax Incentive Act, 26 of 2013 and Job Seekers’ Grant

Abstract

There is chronic youth unemployment in South Africa. The situation is appalling and the youth are restless. Government has come up with various policies interventions to address the problem and create jobs. But each policy discussion to make this happen has been met with stiff oppositions from different stakeholders. For instance, a leading trade union in South Africa has vehemently opposed wage subsidies being proposed by the government. The ruling party has intervened by proposing job seekers’ grants. The concern is that while different stakeholders are jostling for recognition regarding the issue of youth unemployment, the youths are the hardest hit. The situation is becoming unbearable because those who are supposedly employed are losing their jobs due to various strike actions and economic meltdown. This article therefore, makes a modest attempt to examine the two concepts of wage subsidies and jobseekers’ grants. What they stand for and what they set out to achieve. DOI: 10.5901/mjss.2014.v5n2p779