ABOUT SKILLS DEVELOPMENT
Skills development has been identified as a key requirement for economic growth in South Africa, and for the economic empowerment of the previously disadvantaged majority.
As a result, the Skills Development Act (1998) provides a framework for the development of skills in the workplace. Amongst other things, the Act makes provision for skills development by means of a levy-grant (Mandatory Grants & Discretionary Grants scheme, and the establishment of 27 sector-specific Sector Education and Training Authorities (of which there is now only 23) – or Setas – to administer the scheme's funds, and manage the skills development process. Government then introduced the Skills Development Levies Act of 1999. In terms of the Skills Development Levies Act all organisations in South Africa with a payroll exceeding R500,000 per annum must pay a 1% Skills Development Tax on their payroll. This tax is fully contributed by the employer as part of its general statutory taxes calculated on the EMP 201 SARS form.
The levies paid to SARS are put in a special fund. 80% of the money from this fund is distributed to the different SETAs and the other 20% is paid into the National Skills Fund. The SETAs then pays grants to employers who participates in this initiative. The National Skills Fund funds skills development projects that don't fall under the SETAs.
It’s a legal requirement that companies with more than 50 employees have to appoint a Skills Development Facilitator (SDF). The Skills Development Facilitator can be a permanent employee of the organisation or an external consultant. The facilitator is responsible for the development and planning of a company's skills development strategy. This will include the development and implementation of an annual workplace skills plan and the submission of an annual training report. He or she also serves as a resource to the employer with regard to the criteria required for accreditation of courses, skills programmes and learnership development, and all administration involved.
Once a facilitator has been appointed, employers can develop the skills of their staff, and reclaim the funds for doing this in three ways:
Whether you pay R100.00 or R10 000.00 per month towards the Skills Development Levy (SDL), you are entitled to claim up to 70 percent should you meet the Criteria set by your SETA. These can be claimed via different Grant Schemes.
The following happens to your monthly contribution:
- 20% - Paid towards the Department of Labour’s National Skills Fund
- 10% - Paid towards the SETA for administration
- 50% - Can be claimed via Mandatory Grants (Should you meet criteria)
- 20% - Can be claimed via Discretionary Grants (Should you meet criteria)
Each and every SETA sets certain criterion which needs to be met with regards to your Workplace Skills Plan and Annual Training report. If your organisation completes the training (reported on your Annual Training Report) as it was planned on your Workplace Skills Plan you would qualify to claim back 50% of your monthly contribution.
IMPORTANT – ONLY ORGANISATIONS WHO HAVE SUBMITTED A WORKPLACE SKILLS PLANS & ANNUAL TRAINING REPORTS BY THE DUE DATE SET BY THE DEPARTMENT OF LABOUR ARE ENTITLED TO CLAIM THIS GRANT
20% of your contribution and all unclaimed monies of other companies are being deposited into a discretionary fund. You have a choice to participate in the different discretionary Grant funding windows, in means of Learnerships, Skills Programmes & Strategic Projects.
IMPORTANT – ONLY ORGANISATIONS WHO SUBMIT THIS GRANT APPLICATION ON OR BEFORE THE DUE DATE WILL QUALIFY FOR THIS GRANT.
YOURS IN EMPOWERING TRANSFORMATION DELIVERS THE FOLLOWING SKILLS DEVELOPMENT SERVICES;
Capacity Building and General staff orientation:
Capacity build management and staff to the benefits of the Skills Development Programme, and the benefits of utilising the levy grant initiatives i.e. the Workplace Skills Plan [WSP], Annual Training Report [ATR] and Discretionary Grant funding [DG] being; Learnerships, ABET, Skills Programmes & Strategic Programmes.
This service will include the following:
- Committee selection in terms of Skills Development Legislation
- Orientation of your management and staff so as to complete your WSP/ATR and DG by gathering and analysing information
- Capacity building / refresher training to your management, decision-makers and Training/Equity committee to the benefits of the levy grant initiatives (WSP, ATR and DG funding) in terms of the Skills Development Initiative
- Attending all schedule Committee meetings, throughout the year and supplying input where necessary. Meetings to be schedules on a monthly basis and the service provider to attend all meetings if and when possible.
- Provide guidelines on the sourcing of Training Providers.
Skills Development Facilitation and Administration:
These services will include the following:
- Assist in Completing WSP/ATR and DG with your Company.
- Submission of WSP/ATR and DG’s to the RELEVANT SETA at legislated deadlines.
- Interact with the relevant Consultants and training providers, SETA, SARS and Dept of Labour [D.O.L].
- Provide feedback to your Company on the relevant evaluations, queries and approvals.
- Contract management related to the RELEVANT SETA Funding.
- Continuous Monitoring, Co-ordination, Reporting and Advising on the implementation of a sensible training plan.
- Monitoring and reporting on the deliverables in terms of RELEVANT SETA targets, policies and procedures.
- Apply for up to 70 % grant claim against your SDL payments.
- Compliance with Skills Development legislation and guidelines.
- Allocated Skills Development Facilitator.
- Dove-tailing of the BEE as well as the EE Plan.
- Administration, filing and recording of all relevant data and documentation.
