FAQ
FAQ
Learnerships
A learnership is a structured program that combines both theoretical education and practical on-the-job training. Registered with a Sector Education and Training Authority (SETA), it leads to an accredited qualification, equipping individuals with the skills needed for their careers.
Learnerships are open to both employed (18.1) and unemployed (18.2) individuals. Employers can use learnerships to upskill their current workforce or to recruit and train new talent, expanding their talent pipeline.
Employers enjoy a range of benefits, including enhanced workforce skills, improved productivity, and increased employee retention. Learnerships also provide access to financial incentives like tax benefits, discretionary grants, and help boost B-BBEE compliance.
Typically, learnerships run for 12-24 months. However, the duration can vary depending on the level of the qualification and specific industry requirements.
Learnerships contribute to business growth by creating a skilled workforce, reducing training costs through grants and tax incentives, and boosting employee loyalty and retention. By investing in talent development, businesses foster long-term success.
Employers can benefit financially in several ways, such as claiming tax deductions under Section 12H of the Income Tax Act, accessing SETA’s discretionary grants, and improving their B-BBEE score through skills development initiatives.
Learnerships play a vital role in helping businesses meet the Skills Development criteria of the B-BBEE scorecard. They provide companies with the opportunity to earn points by training unemployed youth, people with disabilities, and other disadvantaged groups.
Discretionary grants are financial incentives from SETA to encourage employers to invest in skills development programs, including learnerships, apprenticeships, and other training initiatives. To qualify for these grants, employers must submit a Workplace Skills Plan (WSP) and Annual Training Report (ATR).
Learnerships offer a strategic way for employers to build a steady pipeline of skilled talent by providing opportunities for potential employees to gain practical experience while still in training. This helps businesses source qualified candidates who are ready to contribute effectively from day one.
Employers who offer learnerships can benefit from the Employment Tax Incentive (ETI) program, which offers a reduction in the amount of PAYE (Pay As You Earn) tax an employer needs to pay, making it more affordable to hire and train young people. This encourages businesses to invest in youth development, reducing overall employment costs.
Skills Development Facilitation
A Skills Development Facilitator (SDF) is a key figure in managing your company’s training and development initiatives. Their primary responsibility is to ensure that your company complies with the Skills Development Act, including:
- Submitting the Workplace Skills Plan (WSP) and Annual Training Report (ATR) to your relevant Sector Education and Training Authority (SETA).
- Managing learnerships, internships, and bursaries, ensuring they align with your workforce development goals.
- Assisting with SETA grant applications, enabling your company to recover some of the SDL.
Ensuring compliance with B-BBEE Skills Development requirements, which can boost your B-BBEE scorecard.
The WSP is an annual report that outlines your company’s planned training initiatives for the year. The submission of the WSP is a critical step to:
- Recover a portion of the SDL (up to 20%).
- Improve B-BBEE compliance by investing in employee development.
- Align workforce skills with your company’s strategic goals and objectives.
The ATR outlines the training your company has completed during the previous year. Both the WSP and ATR are required for your company to qualify for SETA grants. The ATR helps demonstrate your commitment to employee development and training.
- PTP: A structured training plan aimed at obtaining qualifications such as learnerships, apprenticeships, and bursaries.
- PTR: A report detailing the training completed, including documentation like attendance registers and certificates.
The following documents are necessary to ensure compliance and facilitate the SDF process:
- Company Information: Registration, SARS, SDL, and PAYE numbers.
- Employee Profile: Information including names, job titles, qualifications, race, gender, and more.
- Training Records: Attendance registers, certificates, and invoices.
- Planned Training: Training schedules, needs analysis, and budget allocations.
- Legal & Compliance: EMP forms, proof of SDL payments, and occupational health and safety compliance.
- Additional Supporting Documents: Job descriptions, performance appraisals, and training committee meeting minutes.
Timely submission of the WSP/ATR ensures your business can access critical benefits, including:
- Mandatory Grants (up to 20% SDL recovery).
- Discretionary Grants to fund additional training initiatives.
- B-BBEE Compliance Benefits, improving your company’s B-BBEE scorecard.
- Enhanced workforce planning and development to align employee skills with business needs.
Failure to submit your WSP and ATR on time can result in significant consequences:
- Loss of SDL Rebates and Mandatory Grants.
- Ineligibility for SETA Discretionary Grants.
- B-BBEE Non-Compliance penalties, which could affect your company’s scorecard.
The SDL is a 1% payroll tax paid to SARS, which funds training through SETAs. By submitting the WSP/ATR on time, your company can claim back up to 20% of the SDL. Compliance with these submissions ensures your company is positioned to recover a portion of its investment in employee development.
To maximize the returns on your SDL, ensure the following:
- Submit the WSP and ATR on time.
- Enroll employees in learnerships and accredited training programs to align with industry needs.
- Apply for SETA Discretionary Grants to further fund training initiatives.
Align training with scarce and critical industry skills, addressing workforce gaps.
To achieve maximum B-BBEE points, your business must:
- Spend at least 6% of payroll on training for black employees.
- Ensure that all training is NQF-aligned and accredited.
- Actively participate in learnerships, bursaries, and apprenticeships.
Ensure that at least 5% of your workforce is enrolled in training.
The standard deadline for submitting your WSP/ATR is 30 April each year. However, note that some SETAs may have different submission deadlines. SIWA Training Academy ensures that all submissions are finalized well before the due date to avoid penalties and ensure compliance.
Once all required documents are received, the submission process typically takes 10-20 working days. SIWA Training Academy handles the preparation and submission, ensuring a smooth and timely process.
To apply for SETA Discretionary Grants, follow these steps:
- Submit the WSP and ATR on time.
- Check the SETA Discretionary Grant funding windows.
- Apply with the necessary documents and training plans.
Sign the Grant Agreement upon approval to receive funding.
SIWA Training Academy offers comprehensive services, including:
- Full WSP/ATR preparation and submission.
- Assistance with SETA Discretionary Grants to help fund additional training initiatives.
- Alignment with B-BBEE Skills Development criteria to improve your company’s scorecard.
Expert compliance guidance and audits to ensure all requirements are met.
To ensure a seamless submission process:
- Assign an internal point of contact to manage training records.
- Keep employee training records up-to-date.
- Organize invoices, attendance registers, and certificates.
Maintain a clear training budget and strategic plan for development.
12H Tax Allowance
The learnership tax allowance is a government incentive designed to encourage employers to invest in skills development for their workforce. Businesses that enter into registered learnership agreements with SETA can claim tax deductions under Section 12H of the Income Tax Act.
The allowance reduces taxable income, making training and development more affordable. Employers can claim:
- An annual tax deduction for each active learnership agreement.
- A completion allowance once the learnership is successfully completed.
- Higher allowances for learners with disabilities.
The tax allowance varies based on the NQF (National Qualification Framework) level and whether the learner has a disability:
NQF Level | Annual Allowance | Completion Allowance |
1-6 | R40,000 (R60,000 for disabled learners) | R40,000 (R60,000 for disabled learners) |
7-10 | R20,000 (R50,000 for disabled learners) | R20,000 (R50,000 for disabled learners) |
For learnerships exceeding 24 months, the completion allowance is multiplied by the number of consecutive 12-month periods within the duration.
- The learnership agreement must be registered with SETA.
- The employer must complete the IT180 form.
- The learnership must be a recognized qualification on the NQF.
- The employer must keep records of training and learner progress.
Yes. Employers can register learnerships for:
- Employed learners (18.1 learners): Existing employees undergoing upskilling.
- Unemployed learners (18.2 learners): New recruits who are placed in learnerships to gain work experience and qualifications.
Employers can benefit from both discretionary SETA grants and tax deductions:
- Discretionary grants: Employers may receive funding for training costs and stipends.
- Tax deductions: Employers can reduce taxable income significantly through the learnership tax allowance.
The current extension allows employers to claim tax deductions for learnership agreements entered into on or before 31 March 2027.
The total 12H tax deduction is calculated as follows:
- Multiply the annual allowance by the number of learners.
- Multiply the completion allowance by the number of learners.
- Adjust based on the NQF level and whether learners have disabilities.
Learnership Intake | Tax Deduction (Standard) | Tax Deduction (Disabled) | Total Tax Deduction |
25 learners | R1,920,000 | R120,000 | R2,040,000 |
50 learners | R3,680,000 | R480,000 | R4,160,000 |
100 learners | R7,280,000 | R1,080,000 | R8,360,000 |
200 learners | R14,400,000 | R2,400,000 | R16,800,000 |
250 learners | R18,080,000 | R2,880,000 | R20,960,000 |
To fully leverage the learnership allowance, employers should:
- Plan learnership intakes strategically.
- Ensure proper registration with SETA.
- Maintain compliance with reporting and documentation requirements.
- Consider enrolling learners with disabilities to access higher allowances.