The Youth Wage subsidy is an amount to be paid towards the wages or salary of first-time workers. The subsidy is being discussed at the National Economic Development and Labour Council (Nedlac). The council includes labour, business and government and the DA says Cosatu is blocking approval. It is thought the subsidy could provide jobs to almost 500.00 youth.
Youth Wage Subsidy:
Target group: Eligible to all 18-year-old South Africans who leave school.
Mechanism: Subsidy card containing demographic information such as name and ID number as well as the subsidy amount, on to which a uniform subsidy is loaded.
The value of the subsidy: R5, 000.00 (for an individual earning around the minimum wage the subsidy will comprise up to 50 percent of the wage).
Duration: Minimum of six months with a maximum determined by the individual’s wage.
Administration: The individual to receive the subsidy from the government with the employer paying the difference between the actual wage and subsidy amount. Or the employer pays the entire wage and claims the subsidy back.
The subsidy would be portable. Any unused subsidy when an individual leaves a job stays with the individual and is available to the next employer. The subsidy will not expire and should be adjusted for inflation. There is no recommendation regarding which government agency should administer the system.
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