Employers may claim 20% of their total levy contribution annually, called the Mandatory Grant, through submission of a Workplace Skills Plan (WSP) and Annual Training Report (ATR) due by 30 April 2019 each year. Only levy paying organisations may access mandatory grant funding.
Benefits of submitting your reports in time:
1. Recover up to 20% mandatory grant from Skills Development Levies paid to SARS in the financial period.
2. Your Plan and Report may be used as an application for a discretionary grant for essential training.
3. Points will be earned under the revised B-BBEE Codes for the Skills Development priority element upon successful submission of the Plan and Report.
4. Skills Development positively promotes succession planning and Employment Equity in the workplace.
What is the Skills Development Levy?
1. The Skills Development Levy (SDL) Act, Number 97 of 1998, established a compulsory levy scheme for the purpose of funding education and training as envisaged in the Skills Development Act.
2. The levy came into operation on 1 September 1999 and the levy became payable with effect from 1 April 2000.
3. It is payable by employers on a monthly basis.
4. The Minister of Higher Education and Training in conjunction with the various Sector Education and Training Authorities (SETAs) is responsible for the administration of the Skills Development Act No. 97 of 1998. Any enquiries regarding the levy grant scheme must, therefore, be referred to the relevant SETA or the Minister of Higher Education and Training.
The Commissioner for the South African Revenue Service (SARS) is responsible for administrating the SDL Act in so far as it relates to the collection and payment of such levies by employers to the Commissioner.
A WSP is developed annually for the period 01 April to 31 March by a registered skills development facilitator (SDF) and is submitted to the SETA with which the organisation is registered. The WSP facilitates access to the SETAs mandatory grant for skills training.
Organisations are required to report against their WSPs in an Annual Training Report (ATR) that shows how they have addressed the priority skills defined in the WSP.
An equally important purpose of the WSP is that it also provides important sector information to the SETA on employee profiles, skills needs and skills development interventions.
Three Skills Plan are required to cross-communicate at all times.
1. Workplace Skills Plan (for your business).
2. Sector Skills Plan (developed by the Sector within which your company is registered and operates)
3. National Skills Development Strategy (developed by the Department of Labour)
All Skills Plans are required to comply with the requirements of the Skills Development Act., Number 97 of 1998.