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What are the Costs and What Compensation is Offered of Learnerships?

Learnership Tracking


Obviously there are costs associated with training. These include: fees for “off-the job” education and training and the internal costs of providing mentoring and supervision for learners, the assessment of their progress, as well as the learner allowance.

However there are incentives to assist in funding learnerships. These take two principal forms:

1. Cash Grants

Employers who pay the skills levy can claim cash grants when they provide training. These grants can be used to offset learnership costs. Sector Education and Training Authorities (SETAs) may also provide grants for the implementation of learnerships. Employers should get in touch with the SETA to which their skills levies are paid to find out if learnership grants are available. These learnership grants are “discretionary”, so check with your SETA about this grant which can be paid in addition to the levy repayment for drafting and/or implementing a work place skills plan. You may thus be able to get back from the SETA more than your levy payments.

2. Tax Incentives

Following the registration of your learnership with a SETA you are eligible to claim a tax incentive from SARS.

There are two tax incentives, one at the beginning of the learnership and one at the successful conclusion of the learnership.

At the beginning of the learnership:

    • Learners already employed by you – 18(1): Once you have entered into a learnership agreement with a learner and have registered the agreement with a SETA , you may deduct 70% of the annual wages paid to that learner, up to a maximum amount of R17 500 during the relevant year of assessment.
  • Unemployed learners – 18(2): Once you have entered into a learnership agreement with a learner and have registered the agreement with a SETA, you may deduct 100% of the learnership allowance paid to the learner up to a maximum of R25 000 during the relevant year of assessment.

On completion of the learnership you can claim again! Your claim can be up to 100% of the annual wage paid to an employee (18(1)) or 100% of the allowance paid to the “unemployed” learner (18(2)) of up to a maximum of R25 000 during the relevant year of assessment.

For further details of the tax incentive, please consult the SARS website, look at the 2002 amendments to the tax laws or contact your SETA.

Originally posted 2014-04-26 08:00:03. Republished by Blog Post Promoter

Seta Mandatory & Discretionary grant regulations declared invalid 21st Aug. 2015

On 3 December 2012, the SETA Grant Regulations were gazetted (Government Gazette no. 35940). These come into effect on 1 April 2013. There were many major substantial changes in the new regulations and these may have serious implications for skills development in our country.

Some of the main changes were:

  1. That the mandatory grant to employers is reduced from 50% to 20%.
  2. Any unclaimed mandatory grants must be transferred by the 15 August each financial year into the discretionary fund.
  3. Discretionary grants will mainly be paid for programmes offered by public FET colleges and universities.

As a result‚ these funds could be spent on national skills initiatives that were not related to workplace training.

Labour Court has set aside certain aspects of the 2012 Seta Grant Regulations‚ declaring them invalid!

The Labour Court’s judgment on Friday 21st of August 2015 declared both regulations to be invalid‚ and it set them aside with effect from March 31 2016.

The court found that Mr Nzimande had failed to consult the National Skills Authority as required by law.

The court also ruled that the minister had acted irrationally by reducing the mandatory grant to employers as set out in the Skills Development Act. The minister had exceeded his powers by prescribing that surplus Seta funds be moved to the National Skills Fund.

The minister was ordered to pay all costs of the application, and Seta’s now have a period of about six months to prepare for the return to the previous skills-funding regime effective in March 2016.

Busa said on Monday it viewed the judgment as a significant decision that reinforced the rule of law and that reasserted the importance of workplace skills training programmes in SA.