Grant Regulations

The Sector Education And Training Authorities (SETAs) Grant Regulations Regarding Monies Received By A SETA And Related Matters Published In Government Notice R. 990 In Government Gazette No. 35940 Of 3 December 2012.

The SETA Grant Regulations have been released by DHET in order to:

• regulate the proportion of funds available for skills development that are spent on administration;
• provide for SETAs to contribute to the cost of the work of the Quality Council for Trades and Occupations (QCTO);
• discourage the accumulation of surpluses and the carryover of unspent funds at the end of each financial year;
• improve the quantity and quality of labour market information received by SETAs in the form of Workplace Skills Plans (WSP) and the Annual Training Reports (ATR) and Pivotal Training Reports (PTR), to inform planning;
• promote National Qualification Framework (NQF) registered and quality assured PIVOTAL programmes that address priority scarce and critical skills;
• needs identified in Sector Skills Plans (SSP); and
• create a framework within which expanded use is made of public education and training providers for the provision of skills development programmes.

In short, the revised SETA Grant Regulations will give the National Skills Accord “teeth”, as the commitments of the accord now become enforceable through these regulations.

The revisions to the SETA Grant regulations are summarised as follows:

Mandatory Grants

• Submission of WSP & PPT and ATR & PTR deadline will be the 30th June.
• A total of 20 percent Mandatory Grant will be payable to approved WSP & PPT and ATR and PTR submission on quarterly basis effective 1st of April.
• WSP and PPT and ATR and PTR to be signed-off by organised labour, where applicable, particularly with those employers who have a recognition agreement with a trade union or unions in place; otherwise SETAs will not be able to approve payment.
• Before making payments, a SETA must approve the WSP & PPT and ATR & PTR to ensure the levy paying employer meets quality standards set by the SETA.

Click here to view a video that explains the mandatory grants.

Discretionary Grants

Only 49.90 percent of the levies paid will now be available for Discretionary Grants, which will be used by the SETA to address scarce and critical skills stipulated in the SETA Annual Performance Plan. Unclaimed mandatory funds will be transferred to the discretionary fund. Unused funds will have to be paid to the National Skills Funds (NSF) by 1st October of each year.

Section 6 (1) to (15) stipulate the conditions and requirements for discretionary grants.

Click here to view a video that explains the discretionary grants.

Pivotal Programmes

A total of 39.60 percent of the levies paid will be allocated to Professional, Vocational, Technical and Academic Learning (PIVOTAL) programmes.

These PIVOTAL Programmes will be offered through SETAs' Funding Framework and various funding windows will be opened in the financial year which stakeholders may apply for.

Administration Fee

A total of 10.5 percent is allocated to the administration of the SETA and 0,5 percent of that is to be paid to the QCTO

A total of 18 percent is paid directly to the National Skills Fund which is administered by the National Skills Authority

The South African Revenue Service is paid and administration fee of 2 percent for the collection of the levies.