All companies with an annual payroll of R500 000 or more, need to pay a Skills Development Levy of 1% of the leviable amount. It is not a legal requirement in terms of the Skills Development Act or Skills Development Levies Act to submit a Workplace Skills Plan (WSP) and Annual Training Report (ATR) to the relevant Sector Education & Training Authority (SETA). Submitting such applications to the SETA, may qualify the employer for a number of grants (Mandatory Grant = 20% of annual SDL contributions and Discretionary Grant = 49.50% or more of annual SDL contributions). The allocation of such grants will depend on whether the employer has met the grant requirements of the relevant SETA.
It is a requirement in terms of the current 2013 Amended Codes of Good Practice on BBBEE (read with 2019 Amended Statements) for an entity to have a SETA approved Workplace Skills Plan and Annual Training Report, in order for it to qualify for points on any of the indicators of the Skills Development Scorecard. Simply put, an employer may have spent a substantial amount of funds on the development of employees during a specific measurement period, but will not qualify for any points under the element of Skills Development during a verification conducted by a SANAS accredited Rating Agency, if it cannot produce a SETA approved WSP & ATR.
Contact us should you require more information or assistance with your annual WSP & ATR.
