Human Resources
Skills Development Act 97 of 1998
The Skills Development Act, which was introduced in 1998, seeks, amongst other things, to encourage employers to use the workplace as an active learning environment.
The Skills development Levies Act, no 9 of 1999 established a compulsory levy scheme for the purpose of funding Education and Training as envisaged in the Skills development Act. The skills development levies Act came into operation on 01 September 1999 and the levy became payable with effect from 01 April 2000 at a rate of 0.5% of the Leviable amount, and this rate was increased to 1.0% from 01 April 2001.
Purpose of the Act:
The essential purpose of the Skills Development Act is to develop the skills of the South African workforce by -
- Improving the quality of life of workers, their prospects of work and labour mobility;
- Improving productivity in the workplace and the competitiveness of employers;
- Promoting self-employment; and
- Improving the delivery of social services.
Payment of the Levies
Levies can be paid over to one of two institutions. If the employer is not registered with SARS for Tax purposes, the Skills development Levy (SDL) will be paid over directly to the applicable SETA.
However, if the employer is registered for tax purposes the SDL must be paid over to SARS on the EMP201 Return together with Tax and UIF.
Claiming of Grants
Whether you pay R50 or R5000 per month for Skills Levy, you are entitled to get back a portion of the money you have paid in the form of Levy grants.
Implementation Grants or Mandatory Grants - 50%
- Workplace Skills Plan Implementation
(Referred to as the Annual Training Report)
Discretionary Grants - 20%
- Learnership Implementation
- Employee Assistance Programmes
- Assessor Development, etc
By Outsourcing to m Cubed Payroll we will assist in claiming back a percentage of the Skills Development Levies that have been contributed.
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