Skills Development

The Skills Education and Training Authorities (SETAs) provide employers with opportunities to claim back part of their paid levies through two types of grants: the Mandatory Grant and the Discretionary Grant. Here’s a detailed breakdown:

1. Mandatory Grant

• Eligibility:
  • Employers can claim back 20% of the levies paid to the SETA, provided they meet the requirements.
  • A track record of one year is needed, so an employer cannot claim the Mandatory Grant in their first year of levy payment. They can start receiving the grant from the second submission year.
• Submission Requirements:
  • Employers need to provide proof of employee training. This can include:
    • Internal training: In-house training provided by the employer.
    • On-the-job training: Practical training or skill-building within the workplace.
    • External accredited training: Formal training provided by external training providers, recognized by the SETA.
  • The proof must show that employees have participated in these types of training or skills development programs.
• Benefit: The Mandatory Grant helps offset the training budget of the company, effectively refunding a portion of the levies paid, which can be reinvested into further employee development or other business needs.

2. Discretionary Grant

• Purpose: This grant is available for broader training and development initiatives and aims to help employers with funding for skills programs that benefit employees.
• Types of Programs:
  • Bursaries: Financial support for employees or prospective employees pursuing further education.
  • Learnerships: Structured learning programs that combine classroom-based education with workplace experience.
  • Apprenticeships: Programs aimed at developing specific trades or skills.
  • Skills Programmes: Targeted programs designed to address particular skills gaps within the organization.
  • Workplace Experiential Training: Providing employees with practical, hands-on experience in the workplace.
• Funding Support: The SETA has the discretion to approve or decline Discretionary Grant applications. If approved, SETA will fund up to 49.5% of the costs associated with the chosen programs.
• Benefit: By applying for and receiving the Discretionary Grant, employers can significantly reduce the financial burden of training their workforce. This enables companies to upskill their employees, improve productivity, and contribute to the broader goal of skills development in South Africa.

3. Compliance and Benefits

• Good Corporate Citizenship: By participating in SETA programs, employers not only benefit financially but also contribute to the development of the South African workforce.
• Upskilling the Workforce: Employers can enhance the capabilities of their employees, boosting productivity, and ensuring their workforce remains competitive and skilled.

4. Key Takeaways

• Employers can claim 20% back from levies through the Mandatory Grant after one year of levy submissions.
• The Discretionary Grant can help employers cover up to 49.5% of training program costs.
• To apply for these grants, employers must ensure they submit the correct documentation to SETA, demonstrating employee training and development.

By effectively utilizing these grants, employers can reduce training costs while simultaneously investing in the development of their workforce, helping both the business and employees thrive.