Part of the strategy is the Skills Development Levy, which is an amount of money that employers have to pay to SARS for skills development of their employees.

The levies paid to SARS are put in a special fund. 80% of the money from this fund is distributed to the different Sector Training and Education Authorities (SETAs) and the other 20% is paid into the National Skills Fund. The SETAs pay grants to employers who appoint a Skills Development Facilitator for employee training. The National Skills Fund funds skills-development projects that don't fall under the SETAs.

An employer can get back 50% or more of the levies they paid to SARS from the SETA or the National Skills Fund to use on training and developing their own employees' skills.

• Who needs to pay the levy?
• How much do you need to pay?
• How do you pay?
• How do you get a Skills Development Grant?
• Contact details

As an employer, you must pay the skills development levy every month if:

• You have registered your employees with SARS for tax purposes (PAYE), and/or
• You pay over R250 000 a year in salaries and wages to your employees (even if they are not registered for PAYE with SARS).

You need to pay 1% of the total amount paid in salaries to employees (including overtime payments, leave pay, bonuses, commissions and lump sum payments).

To pay you must register with SARS and pay the levy each month. SARS will supply the correct forms to fill in (SDL 201 return form). The levy must be paid to SARS not later than seven days after the end of every month.

You can get money back from the SETA or the National Skills Fund to use on training and developing your employees' skills. To qualify for a Skills Development Grant you must:

• Have paid Skills Development levies.
• Have a Skills Development Facilitator.
• Follow all the rules and regulations in the Act.

For more information contact the National Skills Authority at the Department of Labour:

Private Bag X9090, Cape Town, 8001
Room 1207, 12th Floor, 120 Plein Street, Cape Town, 8000
Tel: 021 461 6030
Fax: 021 462 2832