Basic Guide to Skills Development Levies

Application

• 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

• Skills Development Levies Act

  Prescribes how employers should contribute to the National Skills Fund.

Registration

Levy Amount

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

Payment

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

Non-Payment

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

Related Links

• Basic Guide to Registering for the Skills Development Levy

  The Skills Development Levy Act stipulates that employers must register to pay the levy.

• Basic Guide to Sector Education and Training Authorities (SETAs)

  Sector Education and Training Authorities are required to work out and implement sector skills plans and promote learnerships. They are responsible for handing out funds.

• The South African Revenue Service (SARS)

  Visit the South African Revenue Service (SARS) website