Articles

Mandatory Grants: What They Are and How to Apply

Mandatory grants are grants that SETAs must pay to employers who engage in skills development activities for their employees. Mandatory grants are calculated as 20% of an employer’s leviable amount, which is the amount subject to the skills development levy (SDL). Employers can claim this amount as a deduction from their income tax.

To qualify for mandatory grants, employers must meet the following requirements:

• Register with SARS as an employer and pay SDL
• Have a leviable amount of more than R500 000 per year
• Submit a workplace skills plan (WSP) and an annual training report (ATR) to the relevant SETA

A WSP is a document that outlines the training and development objectives, programmes and budget of an organisation for a specific period. An ATR is a document that reports on the implementation and outcomes of the WSP.

Employers must submit their WSPs and ATRs by 30 April every year. They can do this online or manually, depending on the SETA’s requirements. They must also employ a skills development facilitator (SDF) who can assist them with the planning, implementation and reporting of their skills development activities.

Mandatory grants are paid by SETAs on a quarterly basis. However, if employers fail to submit their WSPs and ATRs by the deadline, or if they do not comply with the grant conditions and quality standards, they will forfeit their mandatory grants. The unclaimed mandatory grants will be transferred to the SETA’s discretionary fund.

Mandatory grants are therefore an incentive for employers to invest in skills development for their employees. They can help employers to provide training and development opportunities for their employees, and to contribute to the national skills development strategy.