The levy grant scheme, legislated through the Skills Development Levies Act, 1999, serves to fund the skills development initiative in the country. The intention is to encourage a planned and structured approach to learning, and to increase employment prospects for work seekers. Participating fully in the scheme will allow you benefit from incentives and to reap the benefits of a better skilled and more productive workforce.
The levy is calculated as 1% of your wage bill, payable monthly. All employers who are registered with the South African Revenue Service (SARS) for PAYE and have an annual payroll in excess of R500 000 must register with SARS to pay for the skills development levy.
Every employer who is liable to pay the levy must register with SARS by completing the registration form, Form SDL 101, which is available from all SARS offices. In order to register the employer must:
Obtain a registration form (SDL 101) from any SARS office, if not received by mail;
Choose from a list of registered Sector Education and Training Authorities (SETAs) as indicated in the SETA classification guide provided with the registration form, the one SETA most representative of your activities, and
Choose a standard industry code (SIC) from the SETA classification guide which most accurately describes the nature of your business.
How will I know what to do in order to comply with the requirements?
The Services SETA will send you all the information you need, including the requirements and timetable for action by you. You will be supplied with contact details of employees of the SETA who are available to help you maximise the benefits of your participation.
Yes. The exemptions are applicable if certain provisions are met. You will be able to apply for such exemptions, which you will find in the SDL 101 form, issued by the Commissioner of SARS. SARS will ultimately determine whether you qualify for an exemption or not.
How do I register as a Skills Development Facilitator with the Services SETA?
You can use the online Skills Development Facilitator registration form available under the Facilitators (SDF) section of this web-site or contact your regional co-ordinator. Your registration will be acknowledged as soon as it is processed.
Proof of expenditure is very important when completing and submitting your Annual Training Report. Proof of expenditure relates to all training costs that the organization has spent on the employees of the company. If the training was done internally then the organization needs to submit all attendance registers but if the training was done by a training provider than all invoices are required.
What is the purpose of a Workplace Skills Plan (WSP)?
The Workplace Skills Plan serves to structure the type and amount of training for the year ahead, and is based on the skills needs of the organisation. A good WSP should consider current and future needs, taking into account gaps identified through a skills audit, the performance management system, succession planning initiatives, and any new process or technology changes planned for the year.
Management discusses the company’s goals with employees who in turn commit to the process of achieving these goals. Management gets the opportunity to discover talent as well as skills that they did know that they had.
Basically this report consists of all attendance registers, proof of expenditure, training provider used in this report the SETA can establish whether training was done or is in the process of being done.
Why is it important to use an accredited training provider?
It is important to use an accredited training provider because it enables the SETA to establish that the training provider used is not a "FLY BY NIGHT" training provider but instead it is a recognized training provider, with recognized standards.
What is the difference between an external provider and a vendor?
A vendor is contracted by a provider to provide training and can be considered as a member of the provider organisation's non-permanent staff. The provider organisation is responsible and accountable for all aspects of training and quality management.
A vendor is therefore is accountable to the ETQA and does not have to register as a provider, whereas an external provider has to fulfil the stipulated requirements in the same way as internal providers.
Does this mean that employers will not be able to claim for employees sent overseas for training?
Any training towards unit standards and qualifications will be eligible for claims. Training not associated with credits for unit standards and towards qualifications will not be eligible for grant funds.
FREQUENTLY ASKED QUESTIONS RELATED TO LEARNERSHIPS
What is a learnership?
A learnership is a work-based learning programme that leads to a nationally recognised qualification. Thus, learners is in learnership programmes have to attend classes at a college or training centre to complete classroom-based learning, and they also have to complete on-the-job training in a workplace. This means that unemployed people can only participate in a learnership proramme, if there is an employer that is willing to provide the required work experience.
How long does it take to complete a learnership proramme?
It usually takes a year but some learnership programmes can take two or more years. It is possible for learners to complete a learnership proramme in a shorter time through Recognition of Prior Learning (RPL). This is a process through which learners will get recognition for parts of the programme for learning done previously or for work experience.
All learners must be paid a learner allowance by the employer. An employer must pay a learner a set allowance calculated in terms of Clause 3 of Sectorial Determination No 5. No learner may be paid less than the allowance as determined.
What is required from learners enrolled on a Learnership programme?
You need to sign both Learnership Agreement and employment contract, thus two legal documents. The Learnership Agreement is signed by you the learner, the employer and training provider and sets out the responsibilities of all three parties.
One of the conditions of a learnership is that unemployed people must be employed by the employer for the duration of the learnership. Unemployed people can therefore only enter a learnership if there is an employer who is willing to take unemployed people into a learnership programme.
Services SETA Division
The Services SETA established provincial offices with the aim of decentralising its activities, as a platform for our member companies to easily access and participate in skill development initiatives and enable them to engage with us on a one-on-one basis regarding their respective industries.
Provincial offices are the implementation vehicles, which ensure that the Services SETA reaches its goals and targets as set out in the National Skills Development Strategy (NSDS).