New SETA Regulations

Siyakha Consulting

By Candice Popplestone

Overview

Revised SETA Grant Regulations

Intent of Grant Regulations

Distribution of Skills Levies

SETA (Sector Education and Training Authority)

Discretionary Grants

PIVOTAL Programmes

Mandatory Grants

New Template

Practical Application

Additional Considerations

Skills Development within the context of B-BBEE

Return On Investment

Revised SETA Grant

Regulations

The Minister of Higher Education and Training has approved and published the SETA Grant Regulations in Government Gazette No. 35940 of 3 December 2012 for the necessary implementation with effect from 1 April 2013 by the Sector Education and Training Authorities (SETAs). The new regulations are in line with the National Skills Development Strategy (NSDS3) and the proposed changes to the BEE Codes.

Intent of Grant Regulations

Regulate spend of funds on administration;

Allocation for Quality Council for Trade and

Occupations (QCTO);

Discourage the accumulation of surpluses and

the carry-over of unspent funds at the end of

each financial year;

Improve the quantity and quality of labour

market information;

Promote National Qualifications Framework

(NQF) registered and quality assured PIVOTAL

programmes that address priority scarce and

critical skills; and

Promote use of public education and training

providers for the provision of skills development

programmes.

SETA (Sector Education and

Training Authority)

A SETA may determine and allocate discretionary grants

in support of the implementation of its Sector Skills Plan

(SSP)

Specify how the SETA discretionary funds will be

allocated to meet sector needs as set out in the SSP

Outline delivery models, project types and mechanisms

for SETA member organisations to access the

discretionary grants

Address scarce and critical skills through programmes

that are designed to address such skills needs, and

which include work integrated learning

Allocate at least 80% of discretionary grant funding to

PIVOTAL programmes

Allocate a maximum of 20% to funding of programmes,

other than PIVOTAL programmes

Distribution of Skills Levies

Previous Distribution

of Skills Levies

New Distribution of Skills

Levies as of 1 April 2013

Discretionary Grants

The amount in the discretionary fund on 1 April

each year must be spent or committed in the

ensuing twelve months

80% of discretionary grants must be allocated to

PIVOTAL programmes that address scarce and

critical skills in the sectors

At the end of each financial year a SETA must have

spent or committed at least 95% of discretionary

funds available to it by the 31 March of each year

A maximum of 5% of uncommitted funds may be

carried over to the next financial year

The remaining surplus of discretionary funds must

be paid by the SETA by 1 October of each year

into the National Skills Fund (NSF)

Pivotal Programmes

PIVOTAL Programmes: professional, vocational, technical and academic learning programmes that

result in qualifications or part qualifications

registered on the National Qualifications Framework

(NQF) that address critical and scarce skills needs.

Professional learning programmes lead to designations that are registered by professional

bodies

Vocational learning programmes lead to a trade and/or the National Certificate Vocational (NCV)

Technical learning programmes occupationally-directed and registered by the SETA; such

programmes include apprenticeships,

learnerships and skills programmes

Academic learning programmes lead to academic qualifications such as certificates,

Higher Certificates, Diplomas and Degrees

Mandatory Grants

With effect from 1 April 2014

WSP/ATR/PTR must be submitted by 30

April of each year

20% of the total levies paid by the

employer will be paid to the employer

who submits a WSP and ATR

If the employer does not claim a

mandatory grant within the time period

specified, the employer’s unclaimed

mandatory grant is transferred to the

discretionary fund by 15 August of each

year

New Template

SECTION A: ADMINISTRATIVE DETAILS

ENTITY DETAILS A1: Entity Name

A2: Skills Development Levy Number (SDL)

A3: Postal Address of the Main Office

City

Province

Postal Code

A4: Standard Industrial Code (SIC Code) for the main business activity

DETAILS OF THE PERSON WHO COMPLETED THE FORM

A5: Title

A6:Surname

A7: First Name

A8: ID Number

A9: Telephone Number

A10: E-mail

BANKING DETAILS A11: Name of Bank

A12: Account Number

A13: Name of account Holder

A14: Type of Account

A15: Branch Name

A16: Branch Code

SECTION B: EMPLOYMENT SUMMARY B1: Total number of employees per occupational category, by gender, population group, disability status

and age group Occupations Male Female Total People with Disability Age Groups Geograp

hy

OFO

Code

Occupational

Category

A C I W A C I W A C I W <35 35-55 >55 Local

Municipa

lity

B2: Total number of employees in each province

New Template

SECTION C: SKILLS DEVELOPMENT C1: Total number of employees per occupational category, by gender, population group, disability status

and age group Occupations Male Female Total People with Disability Age Groups Geography

OFO

Code

Occupational

Category

A C I W A C I W A C I W <35 35-55 >55 Local

Municipality

C2: Planned training - unemployed

OFO Code

Occupational Category

Number to be trained at

Entry Level Intermediate Level Advanced Level

C3: Planned training - employed

OFO Code

Occupational Category

Number to be trained at

Entry Level Intermediate Level Advanced Level

C4: Planned AET Training

AET Total numbers to be trained

New Template

SECTION D: ANNUAL TRAINING REPORT

(Report on training interventions) D1: Number of actual beneficiaries of training per occupational category, by gender, population group and

disability status. Occupations Male Female Total People with

Disability

Age Groups Geography

OFO

Code

Occupational

Category

A C I W A C I W A C I W <35 35-55 >55 Local

Municipality

D2: Number of beneficiaries who completed the training interventions OFO Code Occupational Category Educational

Institute

Number to be trained at

Entry level Intermediate Level Advanced

Level

D3: Total number of beneficiaries who completed AET programmes AET Training Total number of employees

AET

D4: Impact Assessment

Has production increased? Total number of employees

Prove how the profit and production of the company was affected by

training as planned /completed in the WSP/ATR and PIVOTAL Reports

New Template

SECTION E : PLANNED PIVOTAL TRAINING

E1: Number of planned beneficiaries of training per occupational category, by gender, population group and disability

status. Occupations Male Female Total People with

Disability

Age Groups Geography Start

date

End date

OFO

Code

Occupational

Category

NQF

level

PIVOTAL

Programme

A C I W A C I W A C I W <35 35-55 >55 Local

Municipality

E2: Number of verified beneficiaries of training per occupational category, by gender, population group and disability

status. Occupations Male Female Total People with

Disability

Age Groups Geography Start

date

End date

OFO

Code

Occupational

Category

NQF

level

PIVOTAL

Programme

A C I W A C I W A C I W <35 35-55 >55 Local

Municipality

E3: Planned training – unemployed OFO

Code

Occupational Category NQF level PIVOTAL Programmes Number to be trained at Start

date

End date

Entry level Intermediate Level Advanced

Level

E4: Planned training – employed OFO Code Occupational Category NQF level PIVOTAL Programme Number to be trained at Start

date

End date

Entry level Intermediate Level Advanced

Level

New Template

Practical Application Training and development of black employees on learnerships, internships or B, C, D Category training is approximately 5% of total employees

3% of payroll should be invested in the training and development of black employees taking into account gender representation

0.3% of payroll should be invested in the training and development of people with disabilities taking into account gender representation

80% of training should be geared towards PIVOTAL programmes

20% of training is geared towards specific skills training

Training Planning (WSP/ATR/PTR)

Funded Learning Programmes

Unfunded Learning Programmes

Practical Application Grants – requirements and timeframes

Tax Rebates – requirements and

timeframes

18.1 Learners (Employed)

18.2 Learners (Unemployed)

People with Disabilities

SDF’s, Mentors, Facilitators, Assessors and

Moderators

Required documentation:

Agreements and Contracts

Payslips

ID Copies

Certificates

CV’s

Additional

considerations Tax rebates and grants can be applied for and are higher for unemployed learners and people with disabilities

There is also additional funding available through certain SETA’s for reasonable accommodation expenditure

Bursaries can be applied for in partnership with higher learning institutions and the SETA

Companies that are exempt from paying SDL and have not submitted WSP and ATR can still access grants

Companies can earn points on their BEE Scorecards for the Skills Development element

SKILLS

DEVELOPMENT

Measures the extent to

which employers develop

the competencies of

black employees

15 Points

Sub-indicator Weighting

Points

Compliance

Target

Skills development spend on

black employees as % of

Leviable Payroll using ARG

6

3%

Skills development spend on

black employees with

disabilities as % of Leviable

Payroll using ARG (Adjusted

Recognition of Gender

3

0.3%

Number of black learners in

Category B,C and D training

programmes as % of total

employees

6

5%

Skills Development within

the context of B-BBEE

Skills Development within

the context of B-BBEE

Indicator Target Points

Skills Development spend on learning programmes for black employees as % of leviable payroll

6% 8 points

Skills Development spend on black employees with disabilities

0.3% 4 points

Number of black employees on Learnerships, Apprenticeships and Internships as % of all employees

2.5% 4 points

Bonus : Learner Absorption - number of people absorbed by industry at end of learnerships

60% 5 points

“An organisation's ability to learn, and

translate that learning into action rapidly,

is the ultimate competitive advantage”

~Jack Welch

(Chairman and CEO of General Electric

between 1981 and 2001. During his tenure

at GE, the company's value rose 4000%)

Candice Popplestone

Lead Consultant:

Learning & Development

Tel: 011 706 9006

Cell: 082 630 6198

Fax: 086 234 2365

candice@siyakha.co.za

www.siyakha.co.za