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Basic Guide to Skills Development Levies

by admin — last modified 2008-09-12 14:36

Basic Guide to Skills Development Levies

Employers must pay 1% of their workers’ pay to the skills development levy. The money goes to Sector Education and Training Authorities (SETAs) and the Skills Development Fund to pay for training.

Application

The Skills Development Levies Act applies to all employers except–
  • the public service;
  • religious or charity organisations;
  • public entities that get more than 80% of their money from Parliament; and
  • employers –
    • whose total pay to all its workers is less than R 250 000 per year; and
    • who do not have to register according to the Income Tax Act

See

Registration

Employers who are required to pay the skills development levy must register with the South African Revenue Services (SARS).

Levy Amount

Employers must pay 1% of all their workers’ pay to the skills development levy every month.
 
The levy may not be deducted from workers’ pay.

Based on Legislation in Section 3, of the Skills Development Act

Payment

Employers must pay the levy to the South African Revenue Services (SARS) by the 7th day of each month.

Based on Legislation in Section 6, of the Skills Development Act

Non-Payment

Employers who do not pay will have to pay interest on the money they owe and may also have to pay a penalty.

Based on Legislation in Section 11, Section 12, of the Skills Development Act

Distribution of Funds

  • SETAs get 80% of the money
  • Employers get back some of the money back from SETAs as a refund if they train their workers.
  • The Skills Development Fund gets 20% of the money, which is used for special training, etc.

Based on Legislation in Section 8, of the Skills Development Act


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