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SKILLS DEVELOPMENT IN SOUTH AFRICA

2015-05-27

 What is skills Development Levy (SDL)?
Skills development has been identified as a key requirement for economic growth in South Africa, and for the economic empowerment of the previously disadvantaged majority. As a result, the Skills Development Act (1998) provides a framework for the development of skills in the workplace. Amongst other things, the Act makes provision for skills development by means of a levy-grant scheme, and the establishment of sectorspecific Sector Education and Training Authorities - or Setas - to administer the scheme's funds, and manage the skills development process.

Part of the objective of the Setas is to ensure that the skills requirements of the various sectors are identified, and that the adequate and appropriate skills are readily available. They are required to ensure that training is of the appropriate quality, meets agreed standards as laid out by the national framework, and caters for the training needs of new entrants to the labour market as well as the currently employed work force. The Setas are also responsible for a learnership programme and the implementation of strategic sector skills plans.

Who must pay SDL?
In terms of the Skills Development Levies Act, every employer in South Africa who is registered with SARS (South African Revenue Services) for PAYE and has an annual payroll in excess of R500 000 must register with SARS and pay the Skills Development Levy (SDL) in respect of its employees.

How Much Do Company's Need To Pay?
One percent of the total amount paid in salaries to employees (including overtime payments, leave pay, bonuses, commissions and lump sum payments).

When must SDL be Paid?
SDL is paid on a monthly basis, not later than seven days after the end of the month in respect of which the levy is payable.

How must SDL be paid? SDLevies must be paid to SARS and is paid under cover of a completed EMP201 form. (The same form that is submitted to pay PAYE and UIF). 

What happens to the SDL Levy?
The levies are distributed via the 21 SETAs.  Each SETA represents an industry sector in South Africa. The members and stakeholders of SETAs include employers, learners, providers, trade unions, government departments and bargaining councils from each economic sector. Mandatory, Pivotal and Discretionary Grant Funding SARS collects all SDLs of which 20% goes to the National Skills Fund and 80% to the SETAs. SETAs retain 10.5% for their own administration, 0.5% the Quality Council for Trades and Occupation (QCTO) for quality assurance, 20% is dispersed back to compliant and participating employers (Mandatory Grant) and allocate 49% to their Pivotal pool of funds.

80% of this Pivotal pool of funds is available to employers in the form of a Pivotal Grant (subject to application and success submission of a Pivotal Grant Plan) and 20% is reserved for Discretional funding of compliant employers (subject to application/allocation).

PIVOTAL is an acronym for Professional, Vocational, Technical and Academic Learning  programmes leading to qualifications or part qualifications. Examples of Pivotal programmes:
  • Learnerships
  • Apprenticeships
  • Workplace experience
  • Recognition of prior learning
  • Skills programmes
  • Graduate development
  • Public further education and training college graduates
  • Bursaries for universities of technology, public further education and training colleges and university studies
  • Any other programme not listed above but registered on the NQF will be regarded as a pivotal programme.

Employee Tax Incentives
Section12H provides additional deductions  to employers for qualifying learnership agreements. These additional deductions are intended as an incentive for employers to train employees in a regulated environment in order to encourage skills development and job creation. Training contracts that qualify for these deductions are learnership agreements and apprenticeships registered with a SETA.

The annual allowance of R30,000.00 subject to a pro rata reduction when the number of full months in a year of assessment is less than 12. The completion allowance is limited to R30,000.00 when the learnership is for a period of less than 24 full months. For longer agreements the completion allowance is  R30,000.00 multiplied by the number of consecutive 12-month periods covered by the agreement. The allowances are increased to R50000 for learnerships entered into with employees having a disability.

Section 19A of the Income Tax Act (The Employee Tax Incentive/youth Employment subsidy)
The Act encourages private employers to employ young workers between the ages of 18-29 by providing a tax incentive to employers, with government sharing the costs of such employment for a maximum of two years under certain conditions. This programme can also be used to cross fund learnership interventions for unemployed learners (18.2 learners) on proviso that the participants meet the requirement of the incentive.

Learnerships
A learnership is a work based learning programme that leads to an NQF registered qualification. Learnerships are directly related to an occupation or field of work, for example, electrical engineering, hairdressing or project management. For more information, contact the SETA that manages the learnerships in the field in which you are interested.

http://rmlearnership.co.za/index
htm http://www.indeed.co.za/Learnership-jobs
http://latestlearnerships.com
http://www.careersportal.co.za/ learnerships.html
http://availablelearnerships.com
http://www.youthvillage.co.za/category/opportunities/leanerships

Examples of learnerships:

BMW Technical Training Department
The 12-month Learnership programme commences annually on the 1st of March and is conducted by the BMW Technical Training Department at accredited external service providers. It offers participants the opportunity to develop skills and gain BMW specific experience as well as formal Artisan qualification on successful completion of the programme. http://www.bmw.co.za/products/automobiles/bmw_insights/careers_skills.asp

The Toyota Learnership Programme 2016 - 2017
Toyota South Africa and Toyota Financial Services South Africa (TFSSA) offer individuals from different communities across South Africa various learnership opportunities every year. These learnerships form part of the government's National Skills Development Strategy to create skills and ease poverty and unemployment.

KwaZulu-Natal Progressive Primary Health Care
The KwaZulu-Natal Progressive Primary Health Care (KZNPPHC) focus is on health education and Skills Development for disadvantaged communities in both rural and urban areas. The following are the learnerships offered:
  • Enrolled Nursing Auxiliary
  • Enrolled Nursing
  • Bridging to Professional Nurse
  • Learner Basic Pharmacist  Assistants
  • Learner Post Basic Pharmacist  Assistants
  • Clinical Specialisation
  • Social Auxiliary social Auxiliary Work Learnership Programme  

Social Auxiliary Work is an act or activity practiced by a social auxiliary worker under the guidance and supervision of a social worker.  They render a supportive service to a social worker to function optimally towards the aims of social work.  It is one of the cadres of the social service professionals. They provide support to social workers in the delivery of social welfare services.
http://socdev.netai.net/?page_id=689

Aviation Rescue and Fire Fighting
This 12 month Learnership programme offers Learners the opportunity to enhance their skills and experience in the Aviation Rescue and Fire Fighting environment.
https://acsa.jonti2.co.za/vacancy/detail/6830

The Rali Mampeule Learnership is a real estate learnership.
The RML is a learnership that was initiated to provide previously disadvantaged individuals with the practical skills that are needed for them to succeed in the real estate industry. Internships Internship Programmes give students workplace experience or an opportunity to practice the work skills that they have studied and will practice in future in their chosen occupations. Training Providers are normally not involved, unless the employer has products that the Interns need to be trained on. These are a great way to add experience to education and empower ones-self to grow in a chosen career. 

For some examples of opportunities visit http://www.kznunemployedgrads.gov.za http://www.kznwildlife.com/ourinternships
html http://www.kzndac.gov.za/ http://internships-sa.co.za/category/internships




SKILLS DEVELOPMENT IN SOUTH AFRICA

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