Author: Vishanya Deeplall
Many employers in South Africa contribute monthly towards the Skills Development Levy (SDL), yet remain unaware that a portion of these contributions can be claimed back and reinvested into their workforce. In terms of the Skills Development Levies Act, employers with an annual payroll exceeding R500 000 and who are registered with the South African Revenue Service (SARS) for PAYE are required to pay 1% of total remuneration as SDL. While payment of the levy is compulsory if the minimum threshold is met, claiming back grant funding is not automatic. Employers must actively participate in the system to benefit; failure to submit the required documentation results in forfeiting the opportunity to recover any portion of the levy paid.
The purpose of the levy is to fund education, training, and skills development initiatives across the country and to encourage businesses to invest meaningfully in developing their employees. A percentage of the SDL paid can be reclaimed through engagement with the relevant Sector Education and Training Authorities (SETA) that governs the employer’s industry sector. To access this funding, employers must register with the appropriate SETA and appoint a Skills Development Facilitator (SDF), who may be internal or external, to oversee the skills development process and manage submissions.
When registered and wishing to receive their grants, employers are required to submit a Workplace Skills Plan (WSP), which outlines planned training and development initiatives for the upcoming year, together with an Annual Training Report (ATR), detailing training implemented during the previous year. These submissions must be compliant, aligned with sector skills priorities, and supported by accurate training records and documentation. In addition, employers must remain up to date with their levy payments to SARS. The standard national deadline for WSP and ATR submissions is 30 April each year, although employers should confirm specific dates with their relevant SETA as requirements may vary.
Through compliance with these requirements, employers may access two types of grants: the Mandatory Grant and Discretionary Grants. The Mandatory Grant enables employers to claim back 20% of the SDL paid, provided they have submitted a compliant WSP and ATR within the prescribed timeframe and remain levy-compliant. Payments are generally made quarterly or as determined by the SETA. Discretionary Grants, on the other hand, are awarded based on SETA funding priorities and budget availability, and typically support initiatives such as learnerships, apprenticeships, internships, skills programmes, bursaries, and work-integrated learning. While discretionary funding can significantly offset training costs, it is competitive and subject to strict evaluation criteria.
If your organisation is paying SDL, you are already contributing 1% of your payroll each month. By ensuring compliant WSP and ATR submissions, you can recover at least 20% of those contributions and potentially secure additional funding to further develop your workforce. Skills development should not be viewed merely as a compliance requirement, but rather as a strategic investment in business growth, sustainability, and long-term competitiveness.
If your company requires assistance with your WSP and ATR submissions, please feel free to reach out to us at [email protected].