Skills Development Levy (SDL) is paid by every employer who’s salary bill exceeds R500,000 per annum. It is 1% of the salary bill and is collected by SARS.
- 50% of this levy is then repaid to the employers on compliance with certain criteria:
- their successful submission of an Annual Training Report (ATR) and Workplace Skills Plan (WSP) (submitted to the relevant Seta by 30 June each year), appointment of a sdf and training having been conducted. This is called a Mandatory Grant Payment and if approved, is paid quarterly.
- The other 50% is used to fund the Setas & NSF (20%). The Setas use their portion for admin costs and the balance to fund the internships, learnerships, etc.
- If an employer is granted an intern/learnership, that funding is known as a Discretionary Grant as there is no entitlement. The chief measurement for a successful intern/learnership is that the recipient is employed thereafter
To apply for internships, learnerships , employers complete a Letter of Intent for funded or non-funded training.
- Non-funded training: the Seta issues a memorandum of understanding (MOU) for the number of learners requested.
- Funded training: the Seta has its budget and has to allocate funds fairly across the board. They have a committee which reviews the funding requests. So, 1st the employer needs to have all its paperwork in order and then wait for the committee’s approval. MICT seem to hold back and only grant SLA’s once they’re in their new financial year.
- If funding is granted, then a Service Level Agreement (SLA) is drawn up and is signed by the Seta CEO and then by the employer. The original must be lodged with the Seta.
- The employer then complies with the SLA:
- Internship Agreements, Fixed Employment Contracts and ID Copies
- Programme Roll-Out Plan (Programme Plan with Activities Schedule per units standard )
- Uploading learners details on MICT Seta MIS Systems
- List and details of selected learners
- The progress reports are then submitted.
- The 2nd disbursement may only follow 3 months later. The Seta is asked to arrange a site visit.
- Thereafter, various site visit forms are completed and the 2nd invoice is submitted. (20% of the SLA)
- The 3rd site visit (and subsequent disbursement) has to wait a further 3 months – invoice is at 20% again.
- The 4th site visit is 3 months after that and the final invoice is for 30%.
3. In- service training (Pivotal) : The government recognized that having placed an onus on employers to employ the recipients of the funding or not qualify for further programs, there were many young South Africans who needed exposure in order to complete their training and/or financial assistance to complete their studies. Pivotal training is specifically for the 6 month experiential training needed to complete degrees; bursaries from 2nd year onwards for formal degrees, etc. – a further proviso is that the recipient must be under the age of 35. The employer is not obliged to employ the recipients.