Proposed Skills Development Regulation Changes

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On the 27th of January 2023 the Minister of Higher Education published new draft SETA Grant Regulations which are up for comment until the 17th of February 2023. This proposed change comes right before the already challenging Skills Submission period is in full swing when employers need to get their submissions in before the 30th of April 2023. If you invest in skills development for business growth in South Africa, these proposed changes could have a significant impact on your organisation.

As supporters of skills development for business growth in South Africa we’ve broken the proposed changes down. They include the following:

· Potential change in submission deadline for the 2024 submissions to June 2023.

· Workplace Based Learning Grant – A new grant to a maximum of 15% of the Skills Development Levies (SDL) paid by the employer.

· To qualify for this grant employers will need to:

o prove or demonstrate they can take on unemployed learners on workplace-based learning programmes such as learnerships, apprenticeships and internships;

o let the SETA inspect and approve their workplace for three to five years to ensure they meet the requirements set out in the Workplace-Based Learning Programme Agreement Regulations of 2018;

o Ensure the programme implemented is in line with the SETA priority skills plan.

· The SETA will issue an acknowledgement letter to qualifying employers indicating the number of learners and the funding allocated.

· The SETA will determine the required documents and the frequency of submission thereof.

· Sectoral Grants – A grant replacing the previously known Discretionary Grant, but reduced to a maximum of 34% of the SDL paid by the employer.

· 70% of the Sectoral Grant will be allocated to Sectoral Priority Occupational Interventions.

· 30% of the Sectoral Grant can be allocated to other programmes which are still aligned with the Sector Skills Plan.

· 15% should be spent on short courses (accredited and non-accredited) and worker education.

· 15% should be spent on work readiness programmes.

For a clear view of how levies will be distributed once this amendment is gazetted, herewith is a diagram:

 

For more information on skills development for business growth in South Africa, please contact the LabourNet Helpdesk at 0861 LABNET (0861 522638).

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