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South Africa’s new tax laws and National Qualifications Framework deductions 2017

New amendments to the Taxation Laws Amendment Bill, introduced changes on tax deductions available to businesses. 2017

With regard to a person without disability, the value of the deduction is increased from R30,000 to R40,000 for qualifications from NQF (National Qualifications Framework) level 1 to NQF level 6 and decreased from R30,000 to R20,000 for qualifications from NQF level 7 to NQF level 10.

With regard to person with disability, the value of the deduction is increased from R500,000 to R600,000 for qualifications from NQF level 1 to NQF level 6 and remains at R50,000 for qualifications from NQF level 7 to NQF level 10.

A cap of R20 million was also introduced on the claim allowed to each employer.

Have you got learnerships and other BEE training programmes in place?

Learnership Tracking

All Companies/Organizations that have a wage bill (inclusive directors drawings) in excess of R500 000 per annum, must pay 1% of this wage bill as a training Levy (SDL). In order to get some of this money back, they need to have an qualified SDF – Skills Development Facilitator (either internal or external) to advice/assist them with various processes.

Why an Skills Development Facilitator?

  • Have you been getting your grants back from your SETA?
  • Is someone planning , monitoring  and ensuring that your training suits your BBBEE strategy ?
  • Have you got learnerships and other BEE training programmes in place?
If the answer no , then the chances are that you need help.
  • Your business is paying a monthly 1% skills  levy to the receiver of revenue .
  • This is 1% of your total payroll.
  • A portion thereof , 20% is allocated to the National Skills fund.
  • The balance is paid over to your  SETA – Sector  Education and Training authority.
  • The Seta is entitled to withold a small amount for administration costs.
  • You stand to recover at least 20% for basic compliancy and
  • another 50% by way of pre planned training grants from the SETA.

What is the purpose of a Workplace Skills Plan (WSP)? 

The Workplace Skills Plan serves to structure the type and amount of training for the year ahead, and is based on the skills needs of the organisation. A good WSP should consider current and future needs, taking into account gaps identified through a skills audit, the performance management system, succession planning initiatives, and any new process or technology changes planned for the year.

By when is the levy payable?

The levy must be paid to SARS not later than SEVEN days after the end of the month in respect of which the levy is payable, under cover of a SDL 201 return form.

The functions of a Skills Development Facilitator

  • Assist the employer and employees to develop a Workplace Skills Plan (WSP).
  • Submit the Workplace Skills Plan (WSP) to the relevant Seta.
  • Advise on the implementation of the Workplace Skills Plan.
  • Assist to draft an Annual Training Report (ATR) on the implementation of the Workplace Skills Plan.
  • Advice on the quality assurance requirements set by the Seta.
  • Act as a contact person between you and the Seta.
  • Serve as a resource for all aspects of skills development.

Companies/Organisations can either train their own internal person to become the represented SDF or contact any of our Top Students/Facilitators or Agents.

We at TRAINYOUCAN offer a free service where we create the opportunities for Companies / Organisations to get in contact directly with these qualified staff with no hidden cost. Simply another way that we support our learners and members of the group


Originally posted 2014-03-25 10:26:10. Republished by Blog Post Promoter

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

How are learnerships assessed

An assessment system that is appropriate and serves the objectives of the new learnership system has to be put into place. This assessment system should serve to promote quality into a learning and training as well as to give awards for achieved competencies.

It is recommended that a new system be based on the following guidelines:

      *In the assessment process, language requirement must encourage the development and use of languages previously discriminated against.


      *The procedures of the criteria for assessing learner performance should be laid before the assessment takes place.


      *Assessment in a learnership must, as far as possible, be integrative and not only emphasis practical skills.


      *A wide range of evidence should be promoted in an assessment. Portfolio-based assessment should be privileged for moderation as this form of assessment makes auditing less costly and the evidence can travel.


      *The occurrence of external or final test assessment may not be the norm for all kinds of learnerships. *Generally, “high-risk” learning should be subjected to this final assessment.


      *The quality assurance procedures should be developed in consultation of all relevant parties to establish fairness, efficiency and effectiveness.


      *The determination of learning progress should take place primarily where the learning is taking place. The assessor should be registered as competent with an education and training quality assuror/sector education and training organisation. The assessor may be the learning facilitator or instructor.


    *Available qualified and competent assessors are as important as competent trainers.

How are learnerships delivered

The learnership contract must be entered into between the learner, the provider/s of structured learning and organisation/s providing work experience. The learnership contract needs to be registered with a Seta to be eligible for public support.
Where the work experience is to be provided within the context of a job creation programme the contract will need to be entered into between the contractor, the learner and the accredited provider of training and then registered with the relevant Seta.
Where the work experience is to be provided within the context of entrepreneurial development, then either the provider of the training or the learners themselves will have to demonstrate that the contract work to be entered into as part of the training process complies with the range of experience required by the qualification. Such contracts will have to be in place prior to the registration of the learnership with the Seta.
The following issues are likely to affect the successful delivery of learning within the learnership system.
Learnerships are conditional upon both components being fulfilled: where there is no work experience, there cannot be a learnership. However the relative emphasis given to structured learning and work experience will be determined by the relevant Seta.
Work experience may be at a single workplace, cluster of workplaces or in a development or job creation project – provided that the learning outcomes are achieved.
The possibility of “group training schemes,” where groups of employers could be encouraged to come together and provide training, should be investigated. These could be initiated anywhere – by providers, by employment service agencies, by companies – but once established, will be registered with Setas.
The structured learning components of learnerships should be brought as close as possible to the work experience to promote the best learning synergy. For those in the industry this could mean providing theory at an accredited site in the workplace. Trainers could travel to industry instead of learners travelling to provider institutions. Open or technologically enhanced learning could contribute to lowering the unit costs of structured learning.
Where possible, learnership should start with a general overview of the sector before specialised training is offered. For example, learnership in the building industry could start with a general overview of the industry before going into sub-field specialisation such as carpentry or brick-laying.
Assessment should always be considered as an integral part of learnership. In particular, recognition of prior learning (RPL) should enable a learner to gain credit of any component of learnership.
Learnership could be integrated into the learning choice available to scholars in the further education and training band provided where the necessary work experience is available.

How are learnerships financed

Under the Skills Development Act, Setas have an obligation to disburse grants. Currently, one Seta provides grants of around R50.00 per credit (R6000.00 per learnership) with an additional R4000.00 grant upon successful completion of the learnership.

Other Setas have slightly different ways of funding their learnerships. These grants are paid to employers.
Employers currently receive a further incentive to implement learnerships via tax relief for each learnership agreement entered. In terms of Act 30 of 2002, by entering a learnership agreement with an employee, an employer may deduct 70% of annual wages paid to the leaner up to a maximum of R17500.00 from their Tax.
By entering a learnership agreement with an unemployed person, employers may deduct 100% of the learnership allowance paid to the learner up to a maximum of R25000.00.

What are the principles of learnerships

Underpinning the system of learnerships are the following principles:

Co-operation and partnerships: The South African system presently puts responsibility for training in fragmented and diverse structures. Theoretical education is seen as the sole domain of the Education Institutions, while skills’ training is shared between the Department of Education, Department of Labour, industry, private centres and some NGOs. This fragmentation has resulted in numerous problems, including theoretical curricula that lag behind the needs of the industry; industrial training that is frequently divorced from theory; and community training programmes that do not provide progression opportunities and are not recognised by government and industry.

Diversification: Traditional apprenticeships tend to be limited to blue-collar trades such as fitters, electricians, boilermakers or hairdressers and exclude sectors such as sport, arts and welfare and a wide range of service/sectors which are likely to expand rapidly, judging by international trends. Diversification means that learnerships will have to address the needs of large as well as small employers in each economic sector, and will have to be extended to include all sectors.

Increased participation: There is and urgent need to encourage more participation in training as a recognisable and credible form of learning. To do this, it will first and foremost be necessary to demonstrate a real link to employment or self-employment after qualification.
It is also necessary to make it more acceptable to learners to participate in training by ensuring that learnerships are both valuable in themselves and constitute an alternative route to the professions. Furthermore, learnerships need to be made available to a larger number of people at a more diversified range of learning sites.

Demand-led learnerships: Learnerships must be responsive to an economic or social need. Learnerships that are designed to serve such needs are more likely lead to employment or productivity enhancement that are those designed in abstract. Learnerships that are tied to economic growth or social development plans are not only more likely to lead to employment, but may also catalyse it.

Variety of employment context: Current apprenticeships are designed with an exclusive focus on technical skills and the work experience component assumes a single employer placement for full range of work experience. The assumption has contributed to the decline of apprenticeships, as the number of firms willing or able to enter a full contract is limited.

They must therefore enable learners to acquire work experience in a variety of ways. For example through: Rotation across groups of SMME’s, Job creation programmes, Service programmes, Government departments. Learnerships must also be designed to encourage the inclusion of business skills and other issues of national importance.

Integration of education and training: Learning needs to be articulated in a continuum of opportunities that ensure that the relevant education and training are combined appropriately in learning and assessment.

Life-long learning: A principle that is concerned with the continual improvement of learning and skills acquisition to meet the demands of the economy, social development, as well as the needs of individuals.

Quality: Learning programmes must be of a high standard and be continuously improved and updated.

Efficiency and sustainability: Learning programmes must be cost-effective. This requires improved management, better qualified Education Training and Development Practitioners, and clearly articulated performance indicators. The financial policies should ensure that programmes can be sustained.


Learnership Tracking


What is a learnership?

A Learnership is a work-based education and training programme that is linked to a qualification registered on the National Qualifications Framework (NQF) with the South African Qualifications Authority (SAQA).Learnerships are occupationally directed programmes that consist of both structured theoretical learning and practical workplace experience.

What are the benefits of learnerships?

For the learner, learnerships:

  • Provide easy access to learning;
  • Increase access to employment opportunities;
  • Assist in Career-Pathing and Self-development
  • Provide a monthly stipend to learners while they learn;
  • Lead to the acquisition of a formal qualification;
  • Fast track the development of current employees; and
  • Serve as an entrance into the industry for unemployed learners.

For the employer, learnerships provide:

  • Skilled and experienced workers;
  • Development of competent staff;
  • Empowerment credentials and BB-BEE points for the company;
  • Knowledgeable and competent employees who require less supervision;
  • Improved workplace productivity and quality outcomes;
  • A vehicle to address employment equity targets; and
  • Help fill identified skills gaps.

For the Industry, learnerships help industry to:

  • Become competitive in the global market;
  • Build a pool of skilled, qualified & more professional workforce; and
  • Develop their people to world-class standards.

Who participates in a learnership?
A learnership involves three main parties:

  • The learner/s
  • The training provider/s
  • The Employer/s

Tracking Learnerships

Benefits of Learnerships to Business:

Learnership Tracking

Benefits to Business:

The funding of New Venture Creation learners is a rewarding exercise for business in that:

• The business becomes part of the solution to the unemployment
and skills crisis
• The business scores BEE points via a highly tax effective spend
on training
• There is no disruption to normal business operations
• There is minimal administration and internal HR cost as the
training function is outsourced


Learnership Tracking



I, Membathisi Mphumzi Shepherd Mdladlana, Minister of Labour, in terms of Section 55(1) of the Basic Conditions of Employment Act no 75 of 1997, read together with Section 18(4) of the Skills Development Act, No 97 of 1998 hereby make the sectoral determination establishing conditions of employment and rates of allowances for learners in South Africa and fix the second Monday after the date of publication of this notice as the date from which provisions of this determination shall be binding upon all employers and learners in all sectors where Sector Education Authorities (SETAs) have been established.

Minister of Labour