Skills Development Levies Act (No 9 of 1999)
The purpose of the Skills Development Levies Act
This Act regulates a compulsory levy scheme to fund education and training in businesses within various sectors in South Africa. It aims to expand the knowledge and competencies of the labour force and in so doing increase the supply of skilled labour in South Africa, providing for greater productivity and employability.
The criteria currently used for employers to become eligible to pay Skills Levies
If the company has staff registered for PAYE and the annual payroll exceeds R500 000 per annum, the company must register with SARS and pay a skills levy of 1% of the monthly payroll. If the company does not fall within these criteria, it does not have to pay levies or register with SARS.