Understanding the Skills Development Levies Act (No. 9 of 1999)

Understanding the Skills Development Levies Act (No. 9 of 1999)

The Skills Development Levies (SDL) Act of 1999 serves to fund the Skills Development Initiative in the country. The primary aim of the Skills Development Act 97 of 1998 is:

  • To develop the skills of the South African workforce;
  • To increase the levels of investment in education and training in the labour market and to improve return on that investment;
  • To encourage employers to use the workplace as an active learning environment, acquire new skills and provide new entrants to marketplace

The Skills Development Levies Act provides ways to make training affordable by

  • Implementing payment of skills levies
  • Implementing payment of grants
  • Requiring the appointment of Skills Development Facilitators (SDFs)
  • Requiring Workplace Skills Plans (WSPs)
  • Requiring Annual Training Reports (ATRs)

As per the Skills Development Act, certain employers must pay 1% of their payroll to SARS. This is the money used to fund skills development activities in a specific sector.

Who should pay levies?

  • According to the Skills Development Levies Act, all employers that have a payroll of more than R500 000 per annum have to pay a skills development levy (SDL).

SARS refers to this as the ‘leviable amount’ and provides clear guidelines on what amounts are included or excluded from this definition.

Exemption

The following categories of employers are exempt from paying the levy:

  • Employers whose payroll does not exceed R500 000 per annum;
  • Public Service Employers (PSEs) in national and provincial governments. These employers must budget for the training and education of employees at 1% of its payroll;
  • National and provincial entities if 80% or more of its expenditure is paid from funds voted by Parliament. These employers must budget for the training and education of employees at 1% of its payroll;
  • Any municipality that received a certificate of exemption from the Minister of Labour.

Non-payment of Levies

If an employer fails to pay the levy or any portion thereof at the appropriate time (i.e. not later that seven (7) days after the end of every month), the employer has to pay:

  • Interest on the outstanding amount; and
  • A penalty of ten percent (10%) of the unpaid amount

Grants

Originally the Skills Development Levies Act of 1998 distinguished two types of grants to be paid to employers:

  • mandatory grants and
  • discretionary grants.

During 2012, A third grant, the PIVOTAL (Professional, Vocational, Technical and Academic Learning) grant, was introduced by the DHET in an urgent notice in the Government Gazette No 34932 of 2012.

Mandatory Grants

Levy paying employers may claim mandatory grants from their SETA (Sector Education & Training Authority) if they:

  • Have submitted a Workplace Skills Plan (WSP)
  • And an Annual Training Report (ATR)
  • The new regulations stipulate that Mandatory grants of 20% of the total levies paid will be paid monthly.

Discretionary Grants

  • Refer to additional funding that companies can apply for over and above their mandatory grants.
  • Are granted at the discretion of the specific SETA from the surplus of skills development levies of companies that do not claim levies.
  • They fund learnerships, apprenticeships and strategic projects in line with the SETA’s critical scarce skills identified from the workplace skills plans submitted.
  • They may be allocated by the SETA in support of the National Skills Development Strategy (NSDS), the National Skills Accord and any other relevant national skills development priorities detailed in the strategic plan of the SETA and as approved by the Minister.
  • A SETA may only commit a discretionary fund for learners in pivotal programmes beyond each financial year.
  • May be paid to an employer who is not required to pay a levy in terms of the Skills Development Levies Act. The new regulations stipulate
  • That 49,5% of the levies paid by employers will be allocated to discretionary grants. 80% of the discretionary grants will be allocated to PIVOTAL grants.

PIVOTAL Programmes is an acronym which means Professional, Vocational, Technical and Academic learning programmes that result in occupational qualifications or part qualifications on the National Qualifications Framework e.g. Learnerships, Apprenticeships, Recognition of Prior Learning, Skills Programmes and Graduate Development.

10 top tips to foster good work relationships

10 top tips to foster good work relationships

PEOPLE who accomplish great things in business recognise the importance of other
people to their success. The quality of our relationship with our colleagues, employers
and employees are largely responsible for our success or failure.

Did you know?
The average executive spends three quarters of their time dealing with people.
The largest single cost in most businesses is people.
The biggest and most valuable asset a company has is its people.
Plans made at executive level are carried out by or fail to be carried out by people.

Tips to build good relationships with people

1. Get to know people
Finding out and remembering an important thing about people has a positive effect. It
is a sign that we care and can create a positive and lasting bond.
Get to know people by name. Walk about, greet by name, and ask about family and
important things you may know about.

2. Be a good listener
People who listen attentively when someone talks have the ability to build great
relationships. If we are kind, we can persuade the most reserved person to talk about
themselves.

3. Make people feel important
There is nothing more important than people. It costs nothing to show respect and
praise.
It makes people feel important and does wonderful things for them.

4. Avoid arguments
Arguments are the forceful attempt to change another person’s point of view. It
always results in a win-lose situation and may cause damage to a relationship.
Even if you win the argument, you risk losing the relationship.
The next time you find yourself about to engage in an argument, first listen, look for
areas of agreement and postpone action to give both parties time to think the problem
through.

5. Ask for advice
People love the opportunity to show their expertise. Asking someone to help you is a
great way to start a good relationship.
Remember to keep the relationship mutually beneficial or it will not last too long.

6. Show you care
It is often said: “People don’t care how much you know until they know how much
you care.” All the knowledge and talent in the world won’t impress or influence
anyone unless they know we genuinely care about them.

7. Show empathy
Be considerate of people’s feeling. There is great power in the ability to show respect
and consideration for someone’s feeling or situation.

8. Don’t use people
Advancing oneself at the expense of others only gives the illusion of success.
It hurts people and ultimately oneself in the end.
Using people for your own benefit is a short cut to success. It reduces the number of
people who will be willing to help along the way.

9. Bring something to the table
Make your interactions rewarding by exchanging ideas, business opportunities,
information for personal growth and encouragement.
Bringing something positive to the table enhances positive relationships.

10. Be consistent
When we don’t fulfil our obligations, whether it is intentional or unintentional, we
lose credibility.
Our words should always match our actions to maintain consistency.

People must first buy into you before they buy into your vision or product.

• Pick a person each week to get to know better. Remember the information and ask
genuine questions;

• Conduct regular self-reflection to check if you take advantage of others and take
steps to mend the relationship;

• Be creative in your ideas of sharing helpful information with people for their
personal development.

The how and why of internships

The how and why of internships

INTERNSHIPS are usually divided into undergraduate or graduate internships.
Undergraduate internships are for students enrolled in university to get credits towards completion of their studies, whereas graduate internships are for students who have graduated.
Internships are ideal for graduates or those with tertiary qualifications but lack experience.
Both undergraduate and graduate internships can be paid or unpaid.
Internships are designed to enhance practical skills as opposed to theoretical knowledge. Interns are placed full time for a period of six to 12 months at private companies or in the public sector.
Sector Education and Training Authorities use internships to fast-track skills, offer much-needed work experience to unemployed graduates and to empower graduates with practical knowledge aligned to their qualification.
An internship focuses primarily on practical training. The employer determines the duration and content of the internship.

Purpose of internships: 

• To fast-track skills; 

• To offer unemployed graduates with needed work experience; 

• To empower graduates with practical knowledge needed to complete qualification.

Benefits of internships
In the case of undergraduates, an internship enables them to apply the knowledge they have acquired to the practical training they receive in a workplace.
This experience is mandatory at some institutions and for some qualifications.

Undergraduates and graduates have the opportunity to: 

• Gain valuable work experience; 

• Develop new skills and refine others; 

• Apply knowledge gained from studying to on-the-job situations; 

• Reality-test their career choices; 

• Meet and work with professionals, establishing contacts for letters of reference and networking; 

• Experience new work environments; 

• Earn money while they gain practical skills.

Required attributes to stand out in interviews: 

 • Self-motivation and ability to meet deadlines; 

• Ability to work well under pressure; 

• Ability to work independently; 

• Ability to work well as part of a team; 

• Great planning and organising skills; 

• Analytically oriented; 

• Great negotiating skills; 

• Accuracy and detail-oriented

Where does one find internship opportunities?  

You can search the internet for companies who host interns. Most are funded by the Setas. A company applies for discretionary funding through a Seta. Once they are allocated a grant, they usually advertise in local newspapers and on the internet.  

• Sites like Skills Portal on www.skillsportal.co.za,
www.gov.za,
www.careersportal.co.za through to Seta websites; 

• Businesses usually advertise on their webpages and/or on Facebook; 

• Word of mouth; 

• Community newspapers 

• Community service centres or volunteer groups; 

 • Take advantage of networking opportunities; 

• Student organisations; 

• Trade magazines. 

 You should always get as much information as possible and verify it before agreeing to meet for an interview.

Preparing for an internship interview 

• Have a great CV and cover letter; 

• Dress appropriately; 

• Research the company you are interviewing for; 

• Maintain a positive attitude; 

• Make a good first impression; 

• Be open-minded, flexible and professional; 

• Ask questions.

Some questions you can ask

 • How will you evaluate my performance?  

• What will a typical work day be like? 

• How often do you hire interns for full-time positions? 

Internships can start at any time of the year, so keep looking out for opportunities.
Seek help from a career counsellor.

Navigating the learnership route to employment

Navigating the learnership route to employment

A LEARNERSHIP is a work-based approach to learning and gaining a qualification that combines classroom training (theory) with
workplace training (practical). A learnership is registered with the Department of Labour through a Sector Education and Training Authority
(Seta), and leads to a national qualification and/or credits towards it.

Benefits
• Recognises and formalises an employee’s experience and knowledge gained over the years;
• Provides a route to employment or self-employment;
• Provides a learner with practical, on the job experience;
• Allows learners to earn while they learn;
• Offers a stipend to learners to cover travel costs;
• Leads to further learning and gives learners the opportunity to gain a qualification through a structured learning programme;
• A good qualification provides a basis for further personal development. It improves work standards and job satisfaction.

Steps

Step 1: Identify the skills you want
Think about the kind of training or job you are looking for.

Step 2: Register as job seeker
Your nearest labour centre will help employers to find you if they offer a learnership.

Step 3: Find employers that offer learnerships
Contact Setas to find out which employers offer learnerships. Ask friends and family to look out for openings and watch adverts in the
newspapers and on the internet.

Step 4: Prepare a CV
Include your personal details (name, date of birth, etc), education (last institution attended and qualifications), work experience (names
of previous employers and duties that you carried out), other skills (driver’s licence, computer skills, etc) and references (names and
contact details of people who know you well or previous employers).

Step 5: Brush up on your interview skills
Think of the kind of questions you may be asked. Practise with a friend.

Step 6: Update your details
Keep in contact with your labour centre and update your details when they change.

Frequently asked questions

1. How long does a learnership take ?

It usually takes a year, but some learnership programmes can take two or more years.

2. What are the benefits?

You will receive a nationally recognised qualification upon successful completion of the learnership. You will gain work experience that
will improve your chances of getting work.

3. What are the entry requirements?

Most entry requirements require a Grade 12 certificate.

4. What will the training cost?

You do not pay anything to participate in a learnership programme. Learnerships are sponsored by the Setas.

5. How much will a learner earn?

All learners must be paid a learner allowance or stipend by the employer. The stipend is not a salary, but should cover costs such as
travel and meals.

More information can be obtained from any of the 21 Setas (see table above). You can contact them to find out about learnerships close
to you.
Learnerships are advertised in all the major newspapers and on the internet (on career and company websites).
Your local Department of Labour is another source of information. Remember to register as a job seeker.
Ask your working friends and family. They may recieve circulars with vacancies from time to time.
FET colleges and private training companies compile databases of people who want to join a learnership. Try to make contact with
them.

Churches, youth organisations and community development organisations could assist you to find a learnership.
Ask your school guidance counsellor.
Ask your HR or training department about employed learnerships.
Be proactive. You need to find out about opportunities that are available out there.

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