Mandatory Grants

Mandatory Grants are a vital part of the Skills Development Levies system, managed by the various Sector Education and Training Authorities (SETAs). Employers with an annual payroll exceeding R500,000 are required to contribute 1% of their payroll to the Skills Development Levies. These funds are then distributed by the South African Revenue Service (SARS) to the respective SETAs and the National Skills Fund, with a portion allocated for Mandatory Grants. These grants are specifically designed to support and encourage skills development within organizations, ensuring that employers invest in the training and development of their employees.

To be eligible for Mandatory Grants, employers must meet certain criteria. They need to be registered with their relevant SETA, pay their Skills Development Levies, and submit both a Workplace Skills Plan (WSP) and an Annual Training Report (ATR). The WSP outlines the intended skills development initiatives, while the ATR details the training conducted over the past year. Upon approval of these documents by the SETA, employers may receive up to 20% of the total levies they have paid as a reimbursement. This grant helps cover the costs associated with employee training and development.

The purpose of Mandatory Grants is to incentivize employers to continuously invest in their workforce’s skills development. By aligning with national skills development policies, these grants ensure that businesses are not only compliant but also actively contributing to the enhancement of their sector’s overall skills level. This leads to improved productivity and growth within various industries, benefiting both employers and employees across South Africa.