The Skills Development Act was implemented with the purpose of developing the skills of the South African workforce to improve the quality of life for employees and their enhanced prospects of employment. The Act also aims to improve productivity in the workplace, the competitiveness of employers and to promote self-employment.

Skills development is crucial to maintaining or increasing an organisation’s B-BBEE Level. A Skills Development Levy (SLD) is imposed on companies to encourage continuous learning and development. Where an employer has a total salary bill exceeding R500 000 a year, that employer is liable for the levy at the rate of 1% of the salary bill to be paid to SARS and distributed via Sector Education and Training Authorities (SETA’s). This may be claimed back when you invest money in training your employees, particularly through learnerships.

In addition, the threshold of training expenditure on black South Africans has been changed from 3% of the leviable payroll to 6%. This is not paid to SETA’s, but companies are required to monitor it for B-BBEE accreditation purposes, and companies can therefore improve their rating while uplifting company skills.

This can be daunting for many small-and even medium-sized companies, who as a result, pay the levy without participating in any training and skills development, viewing it simply as another tax. We will assist you to source training providers who will assess the business to ascertain what training your employees require. Based on this information we will:

  • Register you with the relevant SETA
  • Source training providers
  • Arrange the training – ranging from basic computer skills to leadership and mentoring programmes
  • Assist you in claiming back a percentage of the levies paid to SARS

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