When it comes to the skills development act, there is a huge amount of
requirements and documentation that is covered, but the legal requirements for
businesses to comply to this act is really very simple.
All companies with an annual payroll figure that is equal to or exceeds R
500,000, is legally required to pay Skills Development Levy (SDL). SDL is 1% of
your monthly payroll figure that must be paid over to SARS on a monthly basis.
This SDL payment is made in conjunction with PAYE and UIF, and is accompanied by
an EMP201 form.
Companies can however claim back some of these levies that are eventually paid
over to your industries’ relevant SETA. All companies that want to claim back a
portion of their SDL levies have to submit a Workplace Skills Plan (WSP), Annual
Training Report (ATR) as well as do a minimum required amount of training on
The Workplace Skills Plan needs to be submitted in June every year to your
relevant industry SETA. This document outlines the planned training for your
company’s staff for the current SETA year. A SETA year runs form the 1st of
April every year through to the end of March of the following Year.
The Annual Training Report also needs to be submitted
along with the WSP to your relevant industry SETA. This document reports back on
all training performed during the previous SETA year on your company’s staff. If
the amount of training is sufficient as laid out in your WSP, your grants will
get paid out from your relevant SETA.
In terms of grants that your company can expect to get back from your SETA will
be determined by the amount of training and the type of training that was
provided to your staff. To be able to get back your mandatory grants (50% of
your SDL) you will have to provide a minimum required amount of training. This
greatly depends on the size of your company. You will also be able to get access
to discretionary grants (20% of your SDL) if you provided specialised training.
Examples of specialised training are Adult Basic Education Training (ABET) and
SETA accredited learnerships.