Claiming for skills development clarified
Government enacted the Skills Development Levies (SDL) Act 1999 to provide a framework to implement strategies that will develop and improve the South African workforce’s skills.
By law, companies with an annual payroll in excess of R500 000 have to contribute towards the Skills Development Fund to help develop and improve skills.
How do these companies contribute to this fund?
By paying SARS a monthly levy, along with their EMP201, equal to 1% of their total monthly remuneration paid. In terms of the act, companies can claim back 55% of the levy they pay. (Read one of our latest news articles where we investigate the proposed new Seta grant regulations.)
Companies who don’t pay the SDL will be liable for penalties and fines totalling 10% of their SDL.
5 types of organisation which are exempt from paying SDL
1. The public sector;
2. Employers with an annual payroll of less than R500 000;
3. Religious or charity organisations;
4. Public entities that get 80% or more funding from Parliament; and
5. Municipalities with exemption certificates.
How is the SDL allocated?
- SARS keeps 8%;
- 12% goes to the National Skills Fund; and
- The other 80% goes to the SETA employers can be reimbursed from for their training expenses.
Do these 3 things if you want to be reimbursed for your training expenses
1. Contribute towards the SDL;
2. Be registered with your SETA; and
3. Submit your Workplace Skills Plan (WSP) and Annual Training Report (ATR) for 1 April – 30 March of the following year by 30 June of that same year.
You can claim for training that isn’t given by SETA-accredited companies!
Yes, this is true. You can claim for structured, internal, day-to-day training and learnerships that you offer.
Important: Have a Skills Development Plan or Workplace Skills Plan in place.
Remember: With a learnership, you will only be reimbursed at the end of the 12 months that the learnership was offered. You can also apply for discretionary funding from the National Skills Fund, which is money accumulated from employers contributing towards SDL but not claiming it back. You can use additional refunds from this fund through bursaries, skills programmes (short courses) and internships.
