Brokers profit from youth tax in­cen­tive

CityPress - - Business - DE­WALD VAN RENS­BURG de­wald.vrens­burg@city­

JSE-listed labour bro­ker Work­force Hold­ings got sub­stan­tial as­sis­tance from the Em­ploy­ment Tax In­cen­tive (ETI), oth­er­wise known as the youth wage sub­sidy.

Like its larger peer Ad­corp, Work­force is pock­et­ing the ETI in­stead of pass­ing it on to clients – who are sup­posed to be given an in­cen­tive by the tax break to hire more young peo­ple.

City Press re­cently re­ported that Ad­corp had claimed R7 mil­lion in ETI by the in­cen­tive’s sec­ond month in Fe­bru­ary, ac­cord­ing to its an­nual re­port this year.

Work­force said in its re­port to share­hold­ers that the ETI had had a “sub­stan­tial” ef­fect on its re­sults.

The com­pany’s ma­jor di­vi­sion, staffing and re­cruit­ment, in­creased its op­er­at­ing profit in the first half this year by 28% to R63 mil­lion com­pared with the first half of 2013.

Over­all, the com­pany’s profit al­most dou­bled to R24 mil­lion.

Work­force’s fi­nan­cial direc­tor, Wil­lie van Wyk, told City Press this week that the com­pany would not dis­close how many peo­ple it had on the ETI, how much ben­e­fit it was de­riv­ing or whether it would be pass­ing the sub­sidy on to clients.

The group places ap­prox­i­mately 25 000 work­ers at other com­pa­nies.

“We are thus not at liberty to dis­close this in­for­ma­tion at this stage, both on ac­count of good busi­ness prac­tice, as well as JSE rules and reg­u­la­tions,” he said.

This is be­cause the in­for­ma­tion

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.