Bizcommunity.Com: Skills levy: Where are the discretionary grants?

 

The 1% skills development levy is a key funding mechanism originally intended to fund learnerships and recognised occupational qualifications for South African business. Sean Jones from the Artisan Training Institute (ATI) cautions against the levy becoming another “form of tax with no direct benefit to industry or job creation”.

The skills levy compels employers with an annual payroll of R500,000 or more to pay 1% of their payroll to Sars. As custodian of the funds, the Department of Higher Education and Training (DHET), channels 80% of this money to the SETAs and 20% to the National Skills Fund (NSF). Annually, the SETAs make a portion of these funds available as an incentive to industry to invest in training through mandatory and discretionary grants.

Some industry players have voiced concerns about the dwindling pool of funds available to employers with substantially reduced benefit from the levy.

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