Sage Pastel Payroll • Overview on Refunds – SDL Mandatory and Discretionary Grants

SDL Overview on Refunds

 

There are two ‘Levy-based’ grants, and four “Discretionary strategic’ grants.

 

These help:

• Simplify the regulation and reporting requirements
• Provide more incentives to employers to participate in the skills process
• Recognise the special position of small firms (> 50 employees), and assist them to participate in the Skills upliftment programme.
• Encourage employers to participate in leadership and Skills programmes.

Levy based grants

 

The SETA must pay this grant to every employer that has:

 

• Appointed a Skills Development Facilitator
• Submitted a Workplace Skills Plan
• Submitted and additional details that the SETA may specify

The SETA must pay this grant to employers who qualify to receive it by no later than 31st October of the financial year in respect of which the grant is paid.

 

Workplace Skills Plan implementation grant (40% to 25%)

 

The SETA must pay this grant to every employer that has:

 

• qualified to receive a workplace Skills Planning grant
• submitted a report on the implementation of its workplace skills plan
• Submitted any additional details that the SETA may specify

The SETA must pay this grant to employers who qualify to receive it by no later that 31st August of the year following the year in respect of which the implementation reports was made.

The percentage will reduce 5% for each year, but will not be less than 25% (for 2004 and beyond).

 

Discretionary strategic grants

 

The SETA may use any residual levy income (after paying levy-based grants and allowed SETA expenses) to make discretionary grants. These grants are not calculated as a percentage of levy paid, but are based on the actual cost to the employer of the training. 01 course, the SETA may only pat the grant if it has sufficient funds to do so.

 

Learnership grants:

 

An employer may apply for a grant towards the approved operational costs of ant learnership agreement that the employer concludes in terms of the skills Development Act. The SETA may only make a learnership grant if the employer has applied to the SETA for the grant before entering into the learnership agreements.

 

Skills programme grants

 

An employer may apply for a grant towards the approved operational costs of any special skills training which has been targeted by the SETA. The application for this grant must have been approved by the SETA before the skills programme commenced.

 

Sector grants:

 

A SETA may make grants to fund initiatives, projects or research in order to achieve the strategic objective of the sector. The criteria for allocating the grant must be publicised at all employers and Trade unions in the Sector.

 

Apprenticeship grants:

 

An employer may apply for a grant towards the approved operational costs of any contract of apprenticeship in terms of the Manpower Training Act. Applications must be made before 30 June 2001. The SETA may only make an Apprenticeship grant if the apprenticeship is registered with the Department of Labour.
(Note that clerks articled to auditors and legal firms are neither learners nor apprentices.)

Employers with more than 50 employees must have submitted and qualified for this Workplace Skill Plan grant before they may receive a discretionary grant.

Employers with less than 50 employees do not have to submit a workplace skills plan to qualify for one of these grants. This will enable smaller employers to recover the costs of learnership and skills programmes without having to submit a Workplace Skills Plan.