Mandatory Grants

Access to Mandatory Grant Funding

The mandatory grant is paid directly to the employer and is 20% of their 1% of the skills development levy contributed to a given financial year by a levy-paying employer registered with the SETA and which must be paid to an employer on condition that the qualifying criteria as set out in this policy are met.

Step 1

Register Organisation with South African Revenue Services

Step 2

Skills Development Levy (SDL) Number Issued

Step 3

Pay 1% of total remuneration paid to employees to SARS

Step 4

Submission to WSP by the 30th April

Step 5

Approval of WSP by HWSETA

Step 6

Payment of quarterly mandatory grant as per the SETA Grant Regulations and The Skills Development Levies Act.

Contact SETA to register Skills Development Facilitator (SDF)

An SDF is an employer resource and can be an employee or a contracted
individual;
The core responsibility of an SDF is to facilitate the WSP and ATR, and the
submission of these documents by 30 April each year;
An SDF monitors payments to SARS, as well as payments received from the SETA.

Submit WSP and ATR by 30 April each year. It is important to note the following:

The organisation submitting the WSP/ATR needs to be up to date with SDL payments to SARS.

Pay 1% of total remuneration paid to employees to SARS

80% is paid to the relevant SETA and divided as follows:

49.5 is for Discretionary Grant Funding;
20% is for Mandatory Grant Funding;
10% is for administration;
0.5% QCTO;
Any unclaimed mandatory grant funding will be transferred to discretionary grant funding by 15 August each year.

20% is paid to National Skills Fund:

To fund projects identified in the National Skills Development Strategy as national priorities;
To fund projects related to the achievement of the purpose of the ACT as the Director-General of the Department of Higher Education and Training determines;
To administer the fund within the prescribed limit as regulated from time to time.