SETA funding lets an employer claw back part of the Skills Development Levy it already pays, in the form of grants toward training its own workforce. South Africa currently has 21 Sector Education and Training Authorities, each responsible for skills development within a specific industry, and understanding how the grant mechanism actually works is what turns a compulsory levy into money that comes back to your business.
This guide covers what SETAs do, the two ways funding reaches you, and what you need to submit to actually access it. It sits alongside the wider set of routes in our list of non-repayable business grants in South Africa.
What SETAs are actually for
SETAs exist under the government’s National Skills Development Strategy, built on the recognition that businesses are the ones actually driving workplace skills development, not government training programmes in isolation. Each SETA identifies the skills gaps within its specific sector, ensures relevant training is available to close them, and monitors the quality of that training against a national framework and international standards.
Membership within each SETA includes employers, trade unions, relevant government departments and, where applicable, bargaining councils from that specific industrial sector.
The two ways funding reaches employers
Both routes are funded from the same source: the Skills Development Levy, a mandatory 1% of payroll that eligible employers already pay.
Mandatory grants. These are calculated at 20% of what an employer has contributed through the levy, and are paid automatically to eligible employers who submit the required documentation on time. This is the more straightforward of the two, since eligibility mainly depends on submitting the paperwork correctly and on time rather than competing against other applicants.
Discretionary grants. The remaining 80% of the levy pool is allocated at each SETA’s discretion, meaning employers have to actively apply through their relevant SETA’s own channels, and allocation depends on the SETA’s specific priorities for that funding cycle rather than being automatic.
Both grants are paid in cash directly to the employer’s account, and the amount available is tied to how much the business has actually contributed through the levy.
What you need to submit
Accessing either grant requires two core documents. A Workplace Skills Plan, setting out your business’s skills needs and the specific training interventions planned to address them, and an Annual Training Report, documenting the training actually delivered against that plan.
Submit these accurately and on time, since late or incomplete submissions are the most common reason employers miss out on grants they were otherwise eligible for. This is genuinely worth building into your annual compliance calendar rather than treating as an afterthought once the deadline is close.
Which SETA applies to your business
Your business falls under the SETA matching its primary sector, agriculture, banking, construction, manufacturing, transport, and so on across the 21 current SETAs. If you are unsure which one covers your industry, the Department of Higher Education and Training’s own SETA listing page lists the current sector allocations, since which SETA covers a specific sub-sector occasionally shifts and is worth confirming directly rather than assuming from an older list.
Why this is worth the administrative effort
The levy is compulsory regardless of whether you claim anything back, which means not submitting a Workplace Skills Plan and Annual Training Report is simply leaving money you already paid on the table. For a business already running staff training of any kind, structuring it to align with your SETA’s framework and submitting the right paperwork converts a cost you were already carrying into a partially recovered one. Our broader guide on moving from compliance-driven learning to impactful skills development covers how to get more from the training itself, not just the grant.
Frequently asked questions
How many SETAs are there in South Africa?
21, each responsible for a specific economic sector. Confirm which one covers your specific industry directly, since sector allocations occasionally shift.
What is the difference between a mandatory and a discretionary grant?
A mandatory grant is a fixed 20% of your levy contribution, paid automatically to compliant employers. A discretionary grant comes from the remaining 80% and requires an active application, awarded at the SETA’s discretion.
Do I have to pay the Skills Development Levy even if I never claim a grant?
Yes, if you are an eligible employer. The levy is compulsory. Not submitting the required documents simply means forfeiting the grant portion you could otherwise claim back.
What documents do I need to access SETA funding?
A Workplace Skills Plan and an Annual Training Report, submitted accurately and on time to your relevant SETA.
Can any business access SETA funding?
Eligibility depends on being a levy-paying employer registered with the correct SETA for your sector. Confirm your specific eligibility and deadlines directly with your relevant SETA.
Before your next submission deadline
Confirm which SETA covers your business, and put your Workplace Skills Plan and Annual Training Report submission dates on your compliance calendar now rather than scrambling closer to the deadline. That single habit is the difference between recovering a share of a levy you already pay and simply paying it with nothing back.
This article was updated in September 2026.
