Human Capital Development

We provide a range of human resources consulting services, including HR strategy development, policy development and implementation, performance management, talent acquisition, training and development, and employee relations support

  • Develop the skills of the South African workforce.
  • Improve the quality of life for workers.
  • Increase productivity and competitiveness.
  • Promote self-employment.
  • Redress historical imbalances in skills development access.

The Skills Development Levy is a tax collected from employers to fund education and training initiatives.

  • Employers with an annual payroll exceeding R500,000 must register and pay 1% of their total payroll to SARS as SDL.
  • Some government departments, public entities and religious/public benefit organisations may be exempt.

Employers can claim back:

  • 20% of the SDL paid by submitting a Workplace Skills Plan (WSP) and an Annual Training Report (ATR) to their relevant Sector Education and Training Authority (SETA).
  • Discretionary grants for learnerships, skills programmes, internships, and bursaries.
  • Tax incentives for learnership agreements.
  • A WSP outlines the skills needs within the business and the planned training interventions for the year.
  • An ATR reports on the actual training conducted in the previous year.
  • These must be submitted annually to the relevant SETA (usually by 30 April each year) to access SDL rebates and discretionary grants.

A Sector Education and Training Authority (SETA) is a statutory body overseeing skills development within a specific economic sector.
Functions include:

  • Accrediting training providers.
  • Allocating grants.
  • Implementing sector skills plans.
  • Promoting learnerships and apprenticeships.

A learnership is a structured learning programme combining theory and practical work experience, leading to a registered qualification.

  • Governed by a learnership agreement between employer, learner, and training provider.
  • Tax and grant incentives are available for participating employers.

Yes. Skills development forms a critical part of Employment Equity Plans for designated employers (50+ employees), particularly to:

  • Promote training and advancement for historically disadvantaged groups.
  • Meet Employment Equity Act targets.

Non-compliance consequences:

  • For SDL: Penalties and interest from SARS.
  • For WSP/ATR: Loss of grant incentives and non-compliance with Employment Equity Act requirements.

Eligible training includes:

  • Learnerships, internships, and apprenticeships.
  • Short courses and accredited skills programmes.
  • Adult Education and Training (AET).
  • Recognition of Prior Learning (RPL).

           Training must be linked to the National Qualifications Framework (NQF) to qualify for grants.

Yes and no.

  • Small businesses with an annual payroll under R500,000 are exempt from paying SDL.
  • However, if voluntarily participating in skills development initiatives, they may still access discretionary grants via SETAs.

Discretionary funding is grant funding allocated by SETAs for strategic training initiatives like learnerships, internships, and bursaries.
To access it:

  • Submit a detailed application to your SETA during their open window periods.
  • Comply with SDL payments and WSP/ATR submissions.

Priority is given to B-BBEE-aligned and historically disadvantaged beneficiaries

  • A skills programme is a short, focused training intervention that forms part of a full qualification.
  • A learnership is a full qualification-based programme combining structured learning with practical work experience.

             Both are SETA-accredited but vary in length, complexity, and grant value

Training can be done in-house provided the training provider is accredited by a SETA or the Quality Council for Trades and Occupations (QCTO) for the applicable unit standards or qualifications.

Non-accredited in-house training won’t qualify for skills development grants or tax incentives. (There are however some SETA’s that accept on the job training for these purposes)

Skills development is a priority element on the B-BBEE scorecard, with:

  • A target spend of 3%–6% of payroll on training for black employees.
  • Specific weighting for disabled, youth, and rural learners.
  • Mandatory learnership and internship initiatives for better scoring.

Non-compliance with priority elements can result in a level discount on a company’s B-BBEE rating.

Employers can claim:

  • R40,000 upfront and R40,000 on completion for each learner without a disability.
  • R60,000 upfront and R60,000 on completion for learners with disabilities.

                 This is separate from SETA grants and claimed via SARS tax returns.

Employers should maintain:

  • SDL payment records.
  • Signed learnership agreements.
  • Proof of training attendance and completion.
  • WSPs and ATRs submitted.
  • Discretionary grant application records.
  • Tax rebate documentation for learnerships.

An SDF is responsible for:

  • Developing and submitting WSPs and ATRs.
  • Advising the business on training priorities.
  • Coordinating training initiatives.
  • Acting as a liaison between the employer and SETA.

            Employers may appoint an internal or external SDF.

Yes, any employee or learner participating in an accredited programme can be included for SDL rebate and SETA grant claims, provided proper contracts and training records are in place.

Let us help you protect your business, reduce risk, and build a compliant workforce.

  • Draft and submit your Workplace Skills Plan and Annual Training Report to the relevant Sector Education and Training Authority (SETA);
  • Apply for discretionary grants;
  • Handle all queries between the SETA and client;
  • Management of documentation required for compliance and future audits;
  • Advise clients on executable communication strategies;
  • Advise clients on the best practices regarding their implementation of their Workplace Skills Plan and Employment Equity Plan.

Speak to one of our experts

Craig Pannell

craig.pannell@pinionza.com

+27 (0)83 247 3737

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