Companies ready to participate in jobs scheme says Sacci

Employers say they would use the incentives offered by government to employ untrained youths. Image: Naypong Free Digital Photos

This is according to the results of a South African Chamber of Commerce and Industry (Sacci) survey released on Wednesday (13 November).

The jobs incentive scheme is aimed at encouraging businesses to employ youth, allowing them to gain some work experience.

About 88% of the 35 large and small companies surveyed said they would implement the scheme once it was functioning. The Employment Tax Incentive Bill is currently before Parliament and there are hopes it start next year.

Sacci estimates that the 35 companies it surveyed‚ mainly in manufacturing‚ tourism and the services industries‚ would employ between 160 and 216 workers under the scheme. Most of the companies surveyed also wished to see the scheme extended beyond 2016.

In the case where the government offers incentives or tax rebates for certain programmes‚ businesses first have to use their own money to pay the workers and then claim some of it back from government.

Sacci's chief executive Neren Rau said some businesses have lost faith in previous incentive schemes‚ particularly those relating to the sector education and training authorities (Setas), because it has been so complicated to claim money back from the government.

"Businesses tried to access the benefits from the Seta system and many have given up because of the bureaucracy‚ that makes it difficult to get money returned. This is a disincentive in terms of engaging with the system‚" Rau said.

"Many companies continue with their training programmes‚ pay the Seta levies‚ but no longer seek to access the incentives because of the bureaucratic stumbling blocks," he added.

Sacci also called on the government to widen the scope of application for the scheme as in its current form it only applies to the Economic Development Zones or those industries designated by the Minister of Finance, Pravin Gordhan.