SDF Services
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Skills Development Facilitation Services

Skills Development in South Africa is governed by a range of legislation. The Skills Development Levies Act and The Skills Development Act are especially relevant to SDF services as they provide a framework for organisations to develop and improve employee skills.

Our Skills Development Facilitator (SDF)services are aimed at organisations that wish to align their skills development with their strategic corporate objectives. We offer a complete SDF Service using an integrated approach to education, training, and development initiatives, aligned to your organisation and employee needs.

Our team of professionals ensures that you are compliant with the legislation and that you adhere to quality standards. Skills Junction will:

  • Help you identify areas where skills are needed and plan the appropriate interventions to address any gaps.
  • Provide you with a return of between 50 and 350% of money invested dependent on your level of participation.
  • Collaborate with you to administer and plan your skills development effectively.
  • Ensure your organisation records training experiences correctly and that you submit the required documentation to be reimbursed with your SETA Mandatory Grants.
  • Set up your Workplace Training Committee so that meetings occur.
  • Make sure your organisation is prepared and meets the requirements of the Skills Development Monitoring and Auditing visits.

The Skills Development Levies Act & Benefits

Employers who fall within the ambit of the Skills Development Levies Act pay a 1% levy on their total salary and wage bill to SARS for training and developing employees. More than half the contribution can be used to reimburse the training expenses incurred in the form of mandatory, pivotal and discretionary grant funding, provided the employer is compliant with the requirements as detailed by the SETA.

Who Pays Skills Development Levies (SDL)?

The Skills Development Levies Act applies to all employers except the public sector, religious or charity organizations and public entities that get more than 80% of their money from Parliament. Employers whose total pay to all workers is less than R 500 000 per annum are also excluded.

Skills Development Levies Act - Levy Allocations

SARS collects all Skills Development Levies.

  • 20% goes to the National Skills Fund and 80% to the SETAs.
  • SETAs retain 10.5% for administration and 0.5% for the Quality Council for Trades and Occupation (QCTO) for quality assurance.
  • 20% is dispersed back to compliant and participating employers through Mandatory Grants and 49% is allocated to Pivotal Grant funds.
  • 80% of this Pivotal Grant funds are available to employers in Pivotal Grants (subject to application and successful submission of a Pivotal Grant Plan)
  • The remaining 20% is reserved for Discretional Funding of compliant employers (subject to application/allocation). Non-compliant or non-participating employers Mandatory Grants are absorbed into the discretionary pool. SETAs may apply for additional funding from the National Skills Fund (NSF) for special projects. Should the SETA not use the funds at their disposal, they are returned to the NSF.

Grants Explained - Mandatory Grants

The Mandatory Grant facilitates a reimbursement of training expenses (both internal and external) to a compliant employer of up to 20% of their Skills Development Levy contribution, subject to:

  • The employer being up to date with payment of the Skills Development Levies
  • The compilation and submission of a Workplace Skills Plan by 30 June. A WSP is a plan of the training schedules for the next reporting period of April to March.
  • Submission of an Annual Training Report (a report of the training undertaken in the previous reporting period explaining any variances) Employers with more than 50 people are required to form a representative Skills Development committee that collaborates on identifying skills requirements, evidenced through minutes. For employers with less than 50 people there is no requirement for a committee, but the historical achievements of the previous Workplace Skills Plan must be maintained to satisfy the implementation criteria outlined by the SETA. Unionised workplaces must, through consultation, approve WSP & ATR submissions and have them signed off by a appropriately empowered Employee Representative.

Discretionary Grants

In terms of Skills Development Regulations, a Discretionary Grant is a grant paid to applicants at the discretion of the relevant SETA for Skills Development Projects linked to scarce and critical skills in the sector. Companies who don’t participate in Mandatory Grants forfeit the grants each year, and their unclaimed money, plus the SETA’s discretionary allocation and any special funding received by the SETA from the National Skills Fund (NSF), provides funding to participating employers in excess of what is available as their Mandatory Grant. This funding is applied for, and allocated by the employer’s SETA, at their sole discretion.

Benefits

Employers benefit from financial incentives (Section 12H(A) SARS incentive) and participants may access funding from respective SETAs. Organizations can also optimise their BBBEE compliance by aligning training objectives to address skills shortages through participation.

With our hands-on practical experience and expertise, we understand the intricacies of legislation, compliance, and Skills Development planning. We offer a partnership you can trust to give you the right advice. Get in touch!

web image

Skills Development Facilitator Services

Skills Development in South Africa is governed by a range of legislation. The Skills Development Levies Act and The Skills Development Act are especially relevant to SDF services as they provide a framework for organisations to develop and improve employee skills.

Our Skills Development Facilitator (SDF)services are aimed at organisations that wish to align their skills development with their strategic corporate objectives. We offer a complete SDF Service using an integrated approach to education, training, and development initiatives, aligned to your organisation and employee needs.

Our team of professionals ensures that you are compliant with the legislation and that you adhere to quality standards. Skills Junction will:

  • Help you identify areas where skills are needed and plan the appropriate interventions to address any gaps.
  • Provide you with a return of between 50 and 350% of money invested dependent on your level of participation.
  • Collaborate with you to administer and plan your skills development effectively.
  • Ensure your organisation records training experiences correctly and that you submit the required documentation to be reimbursed with your SETA Mandatory Grants.
  • Set up your Workplace Training Committee so that meetings occur.
  • Make sure your organisation is prepared and meets the requirements of the Skills Development Monitoring and Auditing visits.

The Skills Development Levies Act & Benefits

Employers who fall within the ambit of the Skills Development Levies Act pay a 1% levy on their total salary and wage bill to SARS for training and developing employees. More than half the contribution can be used to reimburse the training expenses incurred in the form of mandatory, pivotal and discretionary grant funding, provided the employer is compliant with the requirements as detailed by the SETA.

Who Pays Skills Development Levies (SDL)?

The Skills Development Levies Act applies to all employers except the public sector, religious or charity organizations and public entities that get more than 80% of their money from Parliament. Employers whose total pay to all workers is less than R 500 000 per annum are also excluded.

Skills Development Levies Act - Levy Allocations

SARS collects all Skills Development Levies.

  • 20% goes to the National Skills Fund and 80% to the SETAs.
  • SETAs retain 10.5% for administration and 0.5% for the Quality Council for Trades and Occupation (QCTO) for quality assurance.
  • 20% is dispersed back to compliant and participating employers through Mandatory Grants and 49% is allocated to Pivotal Grant funds.
  • 80% of this Pivotal Grant funds are available to employers in Pivotal Grants (subject to application and successful submission of a Pivotal Grant Plan)
  • The remaining 20% is reserved for Discretional Funding of compliant employers (subject to application/allocation). Non-compliant or non-participating employers Mandatory Grants are absorbed into the discretionary pool. SETAs may apply for additional funding from the National Skills Fund (NSF) for special projects. Should the SETA not use the funds at their disposal, they are returned to the NSF.

Grants Explained - Mandatory Grants

The Mandatory Grant facilitates a reimbursement of training expenses (both internal and external) to a compliant employer of up to 20% of their Skills Development Levy contribution, subject to:

  • The employer being up to date with payment of the Skills Development Levies
  • The compilation and submission of a Workplace Skills Plan by 30 June. A WSP is a plan of the training schedules for the next reporting period of April to March.
  • Submission of an Annual Training Report (a report of the training undertaken in the previous reporting period explaining any variances) Employers with more than 50 people are required to form a representative Skills Development committee that collaborates on identifying skills requirements, evidenced through minutes. For employers with less than 50 people there is no requirement for a committee, but the historical achievements of the previous Workplace Skills Plan must be maintained to satisfy the implementation criteria outlined by the SETA. Unionised workplaces must, through consultation, approve WSP & ATR submissions and have them signed off by a appropriately empowered Employee Representative.

Discretionary Grants

In terms of Skills Development Regulations, a Discretionary Grant is a grant paid to applicants at the discretion of the relevant SETA for Skills Development Projects linked to scarce and critical skills in the sector. Companies who don’t participate in Mandatory Grants forfeit the grants each year, and their unclaimed money, plus the SETA’s discretionary allocation and any special funding received by the SETA from the National Skills Fund (NSF), provides funding to participating employers in excess of what is available as their Mandatory Grant. This funding is applied for, and allocated by the employer’s SETA, at their sole discretion.

Benefits

Employers benefit from financial incentives (Section 12H(A) SARS incentive) and participants may access funding from respective SETAs. Organizations can also optimise their BBBEE compliance by aligning training objectives to address skills shortages through participation.

With our hands-on practical experience and expertise, we understand the intricacies of legislation, compliance, and Skills Development planning. We offer a partnership you can trust to give you the right advice. Get in touch!