This act ensures that there will be money available to pay for the training of people as is stipulated by the Skills Development Act. This act is designed to make training affordable.
The short supply of skilled staff is a serious obstacle in any competitive industry and no different in South Africa. The levy grant scheme aims to expand the knowledge and competencies of the labour force resulting in improvements in employability and productivity. This is achieved through new approaches to planning for training, learning programmes, incentives and an improved employment service. The incentive here is to participate fully in the scheme so you will reap the benefits of a better skilled and more productive workforce.
The payment towards this levy grant scheme is legislated in terms of the Skills Development Levies Act. The intention is to stimulate skills development by enabling employers to reclaim some expenditure on skills development initiatives.
Every employer in South Africa who:
Every employer who is liable to pay the levy must register for the payment of the levy with SARS by completing a registration form.
In order to register the employer must:
Yes, exemptions are applicable if certain provisions are met. Application for such exemptions is contained in the application form, issued by the Commissioner of SARS, who will ultimately adjudicate whether you qualify for exemption or not.
Each month SARS will provide all registered employers with a “Return for remittance” form that will enable you to calculate the amount payable and effect payment.
The amount payable will be calculated as follows:
The levy must be paid over to SARS not later than SEVEN days after the end of the month in respect of which the levy is payable.
Interest is payable at the prescribed rate on late payments. A penalty of 10% will be levied on the unpaid amount.
The levies paid to SARS will be deposited into a special fund from where 80% of it will be distributed to the relevant SETAs as indicated on the registration forms, and the balance, 20%, will be paid into the National Skills Fund. SETAs will in turn pay levy grants to qualifying employers, while the National Skills Fund will fund skills development projects not within the scope of SETAs.
The levy still has to be paid but you should be eligible for a grant.
In the first year of the levy grant scheme you can recover in grants a minimum of 50% of the levy you paid on condition that you meet all the requirements for the different grants. The details of these requirements will be issued to you by your SETA.
The Levy Grant System was revised in 2005:
If your company promotes training and learning in the workplace and you pay your Skills Development Levy every month, you are entitled to the following benefits: