The Department of Employment and Labour recently closed public comment on a new Youth Wage Subsidy White Paper, aimed at incentivising businesses to hire young, entry-level workers while addressing South Africa’s youth unemployment crisis.
(SA)UEO submitted a formal response ahead of the 10 May 2025 deadline—grounded in practical insights from organisers and member businesses across sectors. Although the comment window has now closed, the draft White Paper provides a clear sense of what may lie ahead.
What the Draft White Paper Proposes
The proposed scheme outlines a two-pronged approach to youth employment:
- Financial support for employers who hire young South Africans aged 18–35
- Training and upskilling as conditions for subsidy eligibility, aimed at improving retention and long-term employability
Key features include:
- Monthly wage subsidies for up to 12 months, tiered by region and employment type
- Tax deductions or reimbursements for businesses that retain subsidised employees for a minimum period
- A dedicated digital application portal—housed under the Department or SARS—intended to streamline employer participation
- Optional integration with SETAs or accredited training providers for skills development credits
- A focus on boosting employment in sectors with high youth absorption potential: agriculture, construction, hospitality, services, and informal retail
What Concerns Were Raised by (SA)UEO
In its submission, (SA)UEO welcomed the intention behind the scheme but raised several key concerns:
- That application processes must be simple and non-bureaucratic to ensure uptake by SMEs
- That smaller businesses should not be excluded or overburdened by complex training compliance requirements
- That the definition of a qualifying youth hire should not be overly narrow or constrained by prior work experience
- That the subsidy must not inadvertently undermine existing entry-level wages, leading to exploitation or artificial churn
What Employers Should Take Note Of
Although the policy is still being finalised, the direction is clear:
- Employers may soon have access to wage support for onboarding young, inexperienced workers
- The scheme could align with BBBEE targets and training scorecard elements
- Hiring young people may become more economically attractive—but only if the final scheme is practical and fair
What Happens Next
The Department is reviewing submissions, with a finalised framework expected in the coming quarter. Once published, (SA)UEO will:
- Issue a detailed breakdown of the policy
- Clarify how and when businesses can apply
- Coordinate with Recalibrate to offer onboarding support through vetted experts
Stay Informed. Stay Ready.
Youth employment reform is on the horizon—and if designed well, it could provide meaningful support for employers looking to grow while uplifting young South Africans. (SA)UEO will update members once the final framework is published.
In the meantime, if you’re interested in employing a skilled youth candidate to expand your capacity when this opportunity becomes available, please contact Recalibrate. elise@recalibrate.info