The SDL is calculated as 1% of an employer's payroll and payable monthly to SARS. The funds collected through the levy are used to support skills development and training programs aimed at improving the skills of the South African workforce.
Employers with an annual payroll exceeding R500,000: If an employer's total payroll for a year exceeds R500,000, they are obligated to register for SDL and pay the levy.
Companies should then complete an EMP101 document, a SARS application form, and indicate the Standard Industry Classification code (SIC) that best describes the nature of the business along with the SETA allocated to the specific SIC Code.
1. IST01 from completed by the company stating the current Seta and the Seta to be moved to, including the New SIC code.
2. A inter Seta Transfer request letter signed by the CEO stating which SETA the company would like to transfer to and the reason why - on a company letterhead signed by the CEO.
a) Mandatory Grant- applied for through WSP/ATR submission annually and, if approved, 20% of the SDL paid is disbursed to the company in 4 payments.
b) Discretionary Grant- applied for through an application during a window for applications once or twice per year depending on the SETA itself. The SETA predetermines the amount to be claimed.
The documents needed for the submission include the following:
• Company registration documents
• SDF Appointment Letter
• Authorisation Page (found on the website of each seta)
• Bank letter
• Employee details
• Tax Compliance Certificate
• Proof of training: Registers, invoices, certificates (During the correct Training Period)
• Latest EMPSA
• Minutes of training committee meetings for companies with more than 50 employees.
• BEE Letter
However, attendance registers and proof of training need to be attached in the following submission for your WSP-ATR report to be approved.
• Register with the relevant Sector Education and Training Authority (SETA): Ensure your organisation is registered with the appropriate SETA governing your industry or sector. The registration process may vary depending on the specific SETA.
• Meet the eligibility criteria: Familiarise yourself with the eligibility requirements for claiming grants. This includes complying with all relevant legislation, meeting the required training targets, and submitting the necessary documentation.
• Maintain accurate records: Keep detailed records of your training activities, including attendance registers, training material, and proof of expenses. Accurate record-keeping is crucial when claiming grants, as it provides evidence of compliance and ensures transparency.
• Submit Workplace Skills Plan (WSP) and Annual Training Report (ATR): As part of the grant claiming process, you will need to submit your organisation’s Workplace Skills Plan (WSP) and Annual Training Report (ATR) to the SETA. The WSP outlines your organisation’s training objectives and plans, while the ATR reports on the actual training conducted during the year.
• Complete the necessary documentation: The SETA will provide you with the required forms and documentation to claim the grants. These may include claim forms, financial statements, proof of training expenses, and supporting evidence.
• Submit the grant claim: Fill out the grant claim forms accurately and attach all the necessary supporting documents. Ensure that you meet the submission deadlines specified by the SETA. Late submissions may result in delayed or rejected claims.
• Review and processing: The SETA will review your grant claim and supporting documentation. They may request additional information or clarification if needed. The processing time may vary, but it is advisable to follow up with the SETA for updates on the status of your claim.
• Grant payment: If your claim is approved, the SETA will process the grant payment. The payment may be made directly to your organisation or through an agreed-upon mechanism.
Discretionary Grants:
• Identify the relevant Discretionary Grant: Determine which specific Discretionary Grant program aligns with your organisation’s training needs and objectives. Each Sector Education and Training Authority (SETA) may have different grant programs available based on industry and skills development priorities.
• Review the eligibility criteria: Familiarise yourself with the eligibility requirements for the Discretionary Grant program you intend to claim. Ensure that your organisation meets the specific criteria, which may include factors such as sector relevance, targeted skills, and compliance with training regulations.
• Develop a training proposal: Prepare a comprehensive training proposal that outlines your organisation’s training objectives, methodology, target audience, expected outcomes, and budget. The proposal should clearly demonstrate how the training aligns with the goals of the Discretionary Grant program.
• Contact the relevant SETA: Reach out to the SETA responsible for administering the Discretionary Grant program. Inquire about the specific application process, required documentation, and any upcoming deadlines or submission periods.
• Submit the application: Complete the application form provided by the SETA and attach all required supporting documents, such as your training proposal, budget breakdown, organisational registration documents, and any other requested information. Ensure that all information is accurate and complete.
• Await review and feedback: The SETA will review your application and may request additional information or clarification. They will assess the eligibility and quality of the proposed training program based on the Discretionary Grant program's criteria and available funding.
• Grant approval and funding: If your application is approved, the SETA will provide confirmation and details on the approved grant amount, terms, and conditions. They will specify the process for claiming the funds, which may involve submitting additional documentation, progress reports, or invoices for reimbursement.
• Follow reporting requirements: Once the training program funded by the Discretionary Grant is underway, ensure that you comply with any reporting requirements specified by the SETA. This may include submitting progress reports, attendance registers, financial statements, and any other documentation requested for monitoring and evaluation purposes.
It's important to note that the specific process and requirements for claiming Mandatory and Discretionary Grants may vary depending on the SETA and industry. It is recommended to consult the official guidelines and contact the relevant SETA for detailed information and assistance throughout the grant-claiming process.
The purpose of a Scarce/Critical Skills List is to highlight occupations essential for a country's economic growth, development, and sustainability. These occupations typically require specialised skills, qualifications, and experience, for which a limited supply of qualified professionals domestically exists.
The list typically includes occupations across various sectors, such as engineering, healthcare, information technology, finance, education, and other fields vital to the country's economy and development.
The specific occupations included may vary based on each country's particular needs and priorities.
ARPL Process:
• Identify the qualification: Determine the specific qualification or unit standard you wish to apply for recognition through ARPL. You can consult the official website of the relevant SETA or QCTO to identify the qualification and obtain detailed information about the ARPL process for that particular qualification.
• Review the ARPL requirements: Familiarise yourself with the ARPL requirements, including the evidence and documentation you must provide as part of the assessment. This may include work portfolios, testimonials, projects, or any other evidence that demonstrates your competence in relation to the qualification's outcomes.
• Contact the assessment centre: Reach out to an assessment centre that is registered and accredited to conduct ARPL assessments for the specific qualification you are targeting. The relevant SETA or QCTO can provide you with a list of approved assessment centres.
• Submit an application: Complete the application form provided by the assessment centre and submit it along with the required supporting documentation. The application form will typically require personal details, information about your experience, and the qualification you seek recognition for.
• Assessment process: Once your application is received and processed, the assessment centre will assign a registered assessor to guide you through the assessment process. This may involve an interview, practical assessments, written examinations, or any other relevant assessment methods based on the qualification requirements.
• Assessment outcomes and recognition: After completing the assessment, the assessor will provide feedback on your performance and determine whether you meet the requirements for the qualification. If successful, you will receive recognition for your prior learning through a formal qualification or a statement of competence.
a. BANKSETA
b. CATHSSETA
c. CETA
d. CHIETA
e. EWSETA
f. MERSETA
g. MQA
h. FOODBEV
i. INSETA
April – March:
a. AGRISETA
b. ETDP
c. FASSET SETA
d. FP&M SETA
e. MICTSETA
f. PSETA
g. W&RSETA
h. TETA
i. SERVICES SETA
j. SASSETA
The Employment Equity Act of 1998 is the primary legislation governing employment equity in South Africa.
The main goal of Employment Equity is to address historical imbalances and systemic discrimination in the workplace, particularly those based on race, gender, disability, and other designated groups. It seeks to create a diverse and inclusive workforce that reflects the demographics of South Africa.
Employment Equity entails several key components:
1. Employment Equity Plan:
Employers with a certain number of employees are required to develop and implement an Employment Equity Plan. This plan sets out specific targets and measures to achieve equitable representation and eliminate unfair discrimination in the workplace.
2. Affirmative Action Measures:
Employers are encouraged to take proactive measures to advance the representation of designated groups, which include Black people, women, people with disabilities, and certain ethnic groups. Affirmative action aims to redress historical disadvantages and promote diversity and inclusion.
3. Eliminating Discrimination:
Employment Equity requires employers to take steps to prevent unfair discrimination in all aspects of employment, including recruitment, selection, promotion, training, remuneration, and benefits. Discriminatory practices are prohibited and can result in legal consequences.
4. Reporting and Monitoring:
Employers are required to submit annual Employment Equity Reports to the Department of Employment and Labour. These reports detail progress in achieving employment equity goals, including workforce demographics, recruitment statistics, and initiatives taken to address barriers and promote equality.
5. Employment Equity Committees:
Employers are encouraged to establish Employment Equity Committees comprising representatives from management and employees. These committees play a crucial role in promoting dialogue, monitoring progress, and ensuring the effective implementation of employment equity initiatives.
Non-compliance with Employment Equity legislation can result in penalties and legal action. The South African government is committed to enforcing Employment Equity to rectify historical injustices, create a more equitable society, and promote equal opportunities for all citizens.
It's important to note that the specifics of Employment Equity legislation and requirements may evolve over time, so it is advisable to consult the most up-to-date sources, including the Employment Equity Act and official government guidelines, for comprehensive and accurate information.
Companies with more than 50 employees on their payroll and companies that wish to get a Certificate of Compliance to be able to work with the Public Sector or apply for government tenders.
Deactivations need to be submitted between 1-31 of August annually.
Here are some general categories of disabilities:
1. Physical disabilities:
These include impairments that affect mobility, such as paralysis, limb loss, muscular dystrophy, multiple sclerosis, cerebral palsy, and other conditions that limit a person's physical functioning or mobility.
2. Sensory disabilities:
These encompass impairments related to the senses, such as blindness, low vision, deafness, and hearing loss. People with sensory disabilities may require assistive devices or accommodations to facilitate communication or access to information.
3. Cognitive disabilities:
These disabilities affect cognitive processes, including intellectual disabilities, learning disabilities, and developmental disorders such as autism spectrum disorder. Cognitive disabilities may impact a person's ability to learn, reason, process information, or interact socially.
4. Psychiatric disabilities:
These disabilities are associated with mental health conditions such as depression, anxiety disorders, bipolar disorder, schizophrenia, and post-traumatic stress disorder (PTSD). Psychiatric disabilities may affect a person's mood, thinking, perception, and behaviour.
5. Chronic health conditions:
This category includes various medical conditions that can have long-term effects on a person's daily life, such as chronic pain, epilepsy, asthma, diabetes, HIV/AIDS, cancer, and autoimmune diseases. These conditions may require ongoing medical treatment, accommodations, or adaptations.
It's important to note that disability classifications and terminology can differ across countries and legal frameworks. Definitions and criteria may also evolve as society's understanding and perspectives on disabilities progress.
Legal repercussions:
Failure to comply with the Employment Equity Act can result in legal action and potential penalties. The Department of Employment and Labour has the authority to conduct inspections, audits, and investigations to assess compliance. If an employer is found to be in violation of the Act, they may face fines, sanctions, or legal proceedings.
Compensation orders:
The Labour Court has the power to issue compensation orders against employers who are found to have engaged in unfair discrimination or non-compliance with the Act. This can include orders to pay compensation to affected employees or designated groups.
Loss of reputation:
Non-compliance with employment equity requirements can damage an organisation’s reputation. It may lead to negative publicity, public scrutiny, and a loss of trust from customers, clients, employees, and the broader community. This can have long-term implications for the organisation’s brand and ability to attract and retain talent.
Inability to tender or do business with certain entities:
Many public and private entities in South Africa require compliance with employment equity legislation as a prerequisite for tendering or doing business with them. Non-compliant organisations may be disqualified from bidding on contracts or excluded from business opportunities with these entities.
Adverse employee relations and low morale:
Failure to promote employment equity and create an inclusive workplace can result in low employee morale, dissatisfaction, and strained employee relations. This can lead to increased turnover, decreased productivity, and a hostile work environment.
a) EEA2 submitted to the DOL
b) EEA4 submitted to the DOL
c) Acknowledgement letter of the previous submission
d) Proof of EE forum consultation with meeting minutes
e) EEA12
f) EEA13
The Employment Equity Forum should aim to have a diverse representation of different occupational levels, races, genders, and designated groups to reflect the workforce composition and promote inclusivity. The forum facilitates consultation, collaboration, and decision-making processes related to employment equity planning, implementation, monitoring, and reporting within the organisation.
1. Promoting diversity and equality:
The Employment Equity Manager is responsible for promoting diversity and equality within the organisation. They work to eliminate unfair discrimination, redress past imbalances, and create an inclusive work environment.
2. Developing employment equity plans:
The Employment Equity Manager develops and implements employment equity plans that outline the organisation’s objectives, strategies, and targets for achieving equitable representation and advancement of designated groups (previously disadvantaged groups) in the workplace.
3. Monitoring and reporting:
The Employment Equity Manager collects data, conducts workforce analysis, and monitors progress toward achieving employment equity targets. They prepare regular reports for management and submit the required reports to the Department of Employment and Labour as per the legislative requirements.
4. Advising and training:
The Employment Equity Manager provides guidance, advice, and training to management, employees, and designated representatives on employment equity policies, practices, and legislative requirements. They assist in raising awareness and building capacity to foster a culture of inclusivity and diversity.
5. Consultation and engagement:
The Employment Equity Manager facilitates consultation and engagement processes with employee representatives, including consultation forums and employment equity committees. They ensure that employees have the opportunity to participate in the development and implementation of employment equity initiatives.
6. Compliance and audits:
The Employment Equity Manager ensures compliance with the Employment Equity Act and related legislation. They may conduct internal audits, identify areas of non-compliance, and recommend corrective actions to address any gaps or deficiencies.
Overall, the Employment Equity Manager plays a vital role in promoting equality, diversity, and inclusion in the workplace, and in driving the organisation’s efforts to create a fair and equitable working environment that reflects the diversity of South African society.
• Conducting a workplace analysis.
• Coordination of the process to complete EEA1 forms by all employees.
• Coordination of the process necessary to establish an Employment Equity Forum/Committee.
• Providing appointment letters for Employment Equity Manager and Forum/Committee members.
• Coordination of the process to appoint an Employment Equity Manager.
• Training the Employment Equity Forum/Committee members on the requirements of the Employment Equity Act and their role as committee members.
• Developing an Employment Equity policy and constitution.
• Development of the Employment Equity Plan as required by the Act.
• Development of numerical goals and recommendations in line with legislative requirements.
• Alignment of the Numerical Goals and Targets according to the Sectoral Sub-minimum recommendation.
• Alignment of remuneration in accordance with the National Minimum Wage Act of 2017.
• Development of the EEA2 (Employment Equity Report).
• Development of the EEA2 (Income Differentials).
• Online submission of the EEA2 and EEA4 to the Department of Labour.
• Four consultations/meetings with the Employment Equity Forum/Committee per year.
• Application of the Letter of Compliance for Designated Employers.
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