SETA Funding for Small Businesses

Updated on 12 September 2022

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SETA funding

The primary function of the Sector Education and Training Authority (SETA) is to raise the skills of employees and job seekers through the establishment of learning programmes, such as learnerships, skills programmes, internships and apprenticeships. To achieve this, employers and training providers can access SETA funding in the form of grants.

Below we look at how your business can access SETA funding and its objectives.

The Role of SETAs

SETA was established in recognition that businesses are key drivers of skills development in the workplace. It is an initiative of the government’s National Skills Development Strategy (NSDS) which aims to radically transform education and training in South Africa and to improve industry competitiveness.

South Africa has approximately 23 SETAs in the country with members that include employers, trade unions, government departments and bargaining councils where relevant, from each industrial sector.

In terms of duties, each SETA is responsible for identifying the skills requirements of the various sectors and ensuring that those skills are readily available. Furthermore, the SETAs are responsible for monitoring and maintaining the quality of training provided. With this in mind, they are required to ensure that all training meets an agreed standard, is within a national framework and is comparable to the best international standards.

List of SETAs

Below is a list of the current registered Skills Education Training Authorities (SETA) in South Africa

  • Agricultural Sector Education and Training Authority (AgriSETA)
  • Banking Sector Education and Training Authority (BANKSETA)
  • Chemical Industries Education and Training Authority (CHIETA)
  • Construction Education and Training Authority (CETA)
  • Culture, Arts, Tourism, Hospitality and Sport Sector Education and Training Authority (CATHSSETA)
  • Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA)
  • Energy and Water Sector Education and Training Authority (EWSETA)
  • Fibre Processing and Manufacturing Sector Education and Training Authority (FP&M SETA)
  • Finance and Accounting Services Sector Education and Training Authority (Fasset)
  • Food and Beverage Manufacturing Industry Sector Education and Training Authority (FoodBev SETA)
  • Health and Welfare Sector Education and Training Authority (HWSETA)
  • Insurance Sector Education and Training Authority (Inseta)
  • Local Government Sector Education and Training Authority (LGSETA)
  • Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA)
  • Media, Information and Communication Technologies Sector Education and Training Authority (MICT SETA)
  • Mining Qualifications Authority (MQA)
  • Public Service Sector Education and Training Authority (PSETA)
  • Safety and Security Sector Education and Training Authority (SASSETA)
  • Services Sector Education and Training Authority (SSETA)
  • Transport Education Training Authority (TETA)
  • Wholesale and Retail Sector Education and Training Authority (W&RSETA)

See Also: How to Access Funding For Your Business

How Can Employers Access SETA Funding

There are two ways that SETAs disburse funds to employers in South Africa, through mandatory grants and discretionary grants. Both grants are claimed back by the employer from the Skills Development Levy (SDL) which is imposed on businesses to fund the development and improvement of skills of employees in South Africa.

To access SETA funding your business must submit both a Workplace Skills Plans (WSP), which documents your company’s skills needs and the skills development interventions in place to address those needs, and your Annual Training Reports (ATRs).

Mandatory Grants – Mandatory grants are paid by the relevant SETA to companies who are eligible to receive funding. They are calculated at 20% of an employer’s 1% skills levy.

Discretionary Grants – The remaining 80% of the Skills Development Levy is awarded to employers at the discretion of the SETAs. Employers need to apply for this funding through the relevant channels with their respective SETA.

Both grants get paid to the employers in cash which gets transferred to their accounts and is dependent on the amount that they’ve contributed as a skills levy.

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