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Skills Development

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Skills development is the process where skill gaps are identified and developed. Skills determine the ability of a person to execute plans with absolute success. When promoting learning and development in the workplace, a workforce that will be more skilled and productive is created.

Businesses with an annual payroll of more than R500 000 (including Director fees) have to pay 1% of their payroll to SARS. It is regarded as an offence not to pay Skills Development Levies (SDL).

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The benefits of Skills Development Levies include: 

  • Increased B-BBEE scores

  • Skills Development Grants

  • Tax benefit

 

Skills Development will support a business that has a BEE Certificate immensely, as the Skills Development Element is a critical part of BEE being one of the 5 elements of the scorecard.

Businesses can earn maximum skills development points if you spend the required 3% or 6% of your annual payroll on skills development programmes (depending on certain requirements). In order to claim BEE points for

 

Skills development you need to: 

  • Provide proof that your WSP/ATR has been submitted

  • Provide the WSP/ATR report that was submitted

  • Provide the letter from the Seta stating that your WSP/ATR report has been approved

 

You get two types of grants, Mandatory and Discretionary grants. 

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Mandatory Grants:

Skills Reporting is a requirement if you want to claim mandatory grants from your SETA. Mandatory grants are calculated at 20% of your 1% skills levy. This 20% may be claimed back but a Workplace Skills Plan (WSP) and an Annual Training Report (ATR) must be submitted before the end of April each year.

Between 20% - 69,5% of paid levies may be claimed back. This depends on the specific sector needs of the sector or industry and SETA Specific requirements of the SETA that you are registered with. 

In order to claim back, you must:

  • register a Skills Development Facilitator (SDF),

  • Submit a Workplace Skills Plan (WSP),

  • submit a Pivotal Plan and

  • provide SETA-Accredited training (Mandatory training, leadership, etc.)

 

Our services include: 

  • Skills Development Facilitator (SDF) representing your business

  • Registering the business with the relevant SETA

  • Compiling and Submitting the Annual WSP/ATR Report

  • Compiling and facilitating a representative training committee for businesses with more than 50 employees as required by the SETAs

  • Assisting with facilitation of the Skills Development Meeting and Minutes 

  • Liaising with SETA's 

 

Discretionary Grants: 

a Discretionary Grant is a grant paid to applicants at the discretion of the relevant SETA. 

Discretionary Grants are aimed at encouraging stakeholders to contribute towards Skills Development, such as Skills Development projects linked to scarce and critical skills within the relevant industry.

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The SETA allocates most of the funding to PIVOTAL programmes that can result in a part qualification or full qualification (i.e. any program that is linked to an NQF qualification) for example: 

  • Learnerships

  • Work Integrated Learning

  • Internships

  • Bursaries

  • Skills Programmes

 

In order to apply for Discretionary Grants as an Employer, the Employer must be up-to-date with their Skills Development Levy payments and submit the application in the format provided by the relevant SETA. 

Applications for Discretionary Grants must be made and approved by the SETA before any training or other activity related to the Skills Development project that is being applied for, can commence. 

After a SETA has approved the Discretionary Grant, they will set up a Memorandum of Agreement (MOA), that stipulates the amount of the grant given as well as the terms and conditions of such a grant.

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Our services include: 

 

  • Advice on Discretionary Grants at your specific SETA 

  • Discretionary Grant Applications 

  • Training and Development Management Services which includes: 

  • Sourcing the correct accredited training providers for your Discretionary Grant. 

  • Assistance with record keeping and management of the training during the duration of the Discretionary Grant to ensure that learning interventions are completed. This will greatly assist the company in the avoidance of having to pay back their discretionary grant due to the failure of completing learning interventions. 

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