Step 3: Apply for grants and rebates

Congratulations! Your business is registered as one that can offer workplace-based learning. Now let’s make that designation work for you!

1. You can apply for a mandatory grant.

Companies with an annual payroll of more than R500 000 must contribute 1% of their payroll as a skills development levy. Of this 1%, 80% is allocated to setas and 20% is allocated to the National Skills Fund

To claim mandatory grants you must:

  • Pay the skills development levy.

  • Submit an annual training report (ATR) and workplace skills plan (WSP) by 30 April every year

2. You might be able to claim a discretionary grant.

What is a discretionary grant?

If you are training people in skills that are on your seta’s scarce and critical skills list, you can also apply for a discretionary grant. The decision on these discretionary grants is up to the board of the particular seta you apply to

What is the skills development levy?

The skills development levy is imposed to encourage learning and development in South Africa and is determined by an employer’s salary bill. You pay it via the South African Revenue Service.

How to register for the skills development levy

  • Register for the skills development levy (SDL) using an EMP101 form. The South African Revenue Service will issue an EMP103 form once your company has been registered

    • If you already have an SDL number and your payroll is above R500 000 a year, Sars will issue you with an EMP213 tax certificate

    • If you have a number, but your payroll dips below R500 000 a year, you are not required to pay the SDL

Other incentives

Employment Tax Incentive

If you employ someone who is between 18 and 29 years old and earns less than R6 000 a month, you can apply for a reduction in the amount of PAYE tax that you need to pay for that employee.

To apply, you must complete the Employment Tax Incentive field on your monthly EMP201 submission to Sars.

Broad-based black economic empowerment (B-BBEE) points

The B-BBEE scorecard comprises five pillars, and the skills development pillar is a priority element. Through this system, employers can gain 20 points out of a total of 109 points for workplace-based learning that involves learners who are black.