Employers paying the mandatory Skills Development Levy can recover a genuine share of that cost through their sector’s SETA, but only by understanding and following the specific grant process, which many smaller employers pay into without ever claiming back.
These are the mechanics of how the system actually works.
The levy and grant system, briefly
Employers with an annual payroll above the qualifying threshold pay a Skills Development Levy, collected through SARS, which funds the broader SETA system. A portion of what is paid in can be recovered as mandatory and discretionary grants for training aligned with the levy.
Smaller employers below the levy threshold can often still access discretionary grant funding for training, even without being levy-payers, which is a route many overlook.
Mandatory versus discretionary grants
Mandatory grants are a portion of an employer’s own levy contribution, recoverable by submitting a Workplace Skills Plan and Annual Training Report on time each year to the relevant SETA.
Discretionary grants are a further, separately allocated pool of funding, generally requiring a more specific application aligned with the SETA’s identified priority skills for that sector.
What an employer actually needs to do to claim
Register with the correct sector SETA, submit the required planning and reporting documents by the annual deadlines, and keep genuine records of training delivered, since missing a deadline or submitting incomplete documentation is the most common reason employers miss out on funding they were otherwise entitled to.
Our guide to finding in-demand SETA training courses covers identifying which specific training aligns with your sector’s current priorities, which matters for discretionary grant access.
Get the legal basis and current process right
The levy and grant system operates under the Skills Development Act, and the specific administrative process is set by each sector SETA, so confirm the current requirements directly rather than from an older summary.
The Department of Higher Education and Training oversees the SETA system as a whole and can direct an employer to the correct sector authority.
Frequently asked questions
Who pays the Skills Development Levy?
Employers with an annual payroll above the qualifying threshold, collected through SARS to fund the broader SETA system.
Can a smaller employer below the levy threshold still get training funding?
Often yes, through discretionary grant funding, even without being a levy-payer, which many smaller employers overlook.
What is the difference between mandatory and discretionary grants?
Mandatory grants recover a portion of an employer’s own levy contribution; discretionary grants are a separate pool tied to a sector’s priority skills.
What must an employer do to claim a grant?
Register with the correct sector SETA and submit the required planning and reporting documents by the annual deadlines.
What is the most common reason employers miss out on funding?
Missing a submission deadline or submitting incomplete Workplace Skills Plan and Annual Training Report documentation.
