Sector Education and Training Authorities (SETAs) and the Skills Levy
As an employer, if you submit a Workplace Skills Plan (WSP) and an Annual Training Report (ATR) then 20% of the levies that you’ve paid will be paid as a mandatory grant towards your company.
A Skills Development Levy (SDL) is a levy imposed to encourage learning and development in South Africa and is determined by an employer's salary bill. The funds are paid to the South African Revenue Services (SARS) and are to be used to develop and improve skills of employees.
As an employer, you’re required to pay the skills development levy every month if:
You’ll need to pay 1% of the total amount paid in salaries to employees, including the following:
The levies paid to SARS are put in a special fund and are divided in:
These grants are called mandatory grants that employers get after structuring their Work Skills Plan (WSP). After getting this grant, employers use it to train their employees. This gets paid to the employers in cash which gets transferred to their accounts and it depends on the amount that they’ve contributed as a skills levy.
The National Skills Fund supports skills development projects that don’t fall under the SETAs. The primary focus of the business is determined by analysing what approximately 60% of your employees do.
The fund enables the state to:
Before you can pay the skills development levy (SDL), you’ll need to register with SARS and you’ll also need to indicate which SETA you belong to when you register with SARS.
Employers who fall under more than one SETA must consider the following when deciding which one is best for their workplace based on the following:
Levies are payable to SARS, which acts as a collecting agency for the applicable SETA.
It must be paid within 7 days after the end of the month during which the amount was deducted. If the last day for payment falls on a public holiday or weekend, the payment must be made on the business day before the public holiday or weekend.
The following payment methods are available:
• Electronic payments through the internet (EFT)
• At a branch of one of the relevant approved banking institutions. Cheque payments may not exceed R50 000. This limit applies irrespective of the number of tax periods being paid, or should multiple cheque payments be made.
• At a specific SARS branch, cheque payments may not exceed R50 000. This limit applies irrespective of the number of tax periods being paid, or should multiple cheque payments be made.
|Government Body:||(The Government of South Africa)|
- Skills Development Act, 97 of 1998 (as amended) (Act) (File type: pdf; size: 366.9 KB)