SARS Learnership Incentive

Understanding legislation & Incentives

The Skills Development Levies Act    
The Skills Development Levies Act governs all employers in South Africa whose annual salary and wage bill exceed R 500,000 annually (employers except the public sector, religious or charity organizations and public entities that get more than 80% of their money from Parliament).  Employers who fall within the ambits of the Skills Development Levies Act pay 1% levy of their total salary and wage bill, payable to SARS, for the training and development of people. More than half of the contribution is available for the reimbursement of training expenses incurred by that employer in the form of Mandatory, Pivotal and Discretionary Grant funding, provided they are complaint with the requirements as detailed by Seta.

Where does the money go?
SARS collects all SDL's. 20% goes to the National Skills Fund and 80% to the SETA's.  SETA's 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). Non-compliant or non-participating employers Mandatory Grant is swept into the discretionary pool. SETA's may also apply for additional funding from the National Skills Fund for special projects. Should the SETA not use the funds at their disposal they are swept back to the National Skills Fund (NSF).


What are the benefits of participating?
Employers can benefit from financial incentives (Section 12H (a) a SARS incentive) and participants may access funding from respective SETA's. Organizations will also optimize their B-BBEE compliance by aligning training objectives and will address skills shortages through participation.

The primary responsibility of Siyaya's SDF facilitators is to ensure that clients record training expenses (both internal and external) correctly and submit the necessary documentation in order to be reimbursed their Mandatory and Pivotal Grant by their SETA.

Siyaya services offers clients an obligation free turnkey solution whereby we manage the entire process at a rate which is linked to the gross Salary and Wage bill of the business concerned while ensuring the consideration of supporting legislation.

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