New Seta grant regulations

Latest Seta grant regulations include a reduction in the percentage of mandatory grants

Employers will only be eligible for a mandatory grant of 20% from their annual levy
new seta grant regulations.jpg

The latest grant regulations for the Sector Education and Training Authorities (Setas) include a reduction in the percentage of mandatory grants – from 50% to 20% – and the introduction of the PIVOTAL grant.

According to the gazetted regulations, “Twenty percent of the total levies paid by the employer in terms of section 3(1) as read with section 6 of the Skills Development Levies Act during each financial year will be paid to the employer who submits a WSP (Workplace Skills Plan) and ATR (Annual Training Report).”

Employers will thus only be eligible to receive a mandatory grant of 20% from their annual levy. And grants will only be administered if the employer meets the quality standards set by the respective Seta.

The objectives of the new regulations, as stated in the Government Gazette, are to:

• Regulate the proportion of funds available for skills development that is spent on administration;

• Provide for Setas to contribute to the cost of the work of the Quality Council for Trade and Occupations (QCTO);

• Discourage the accumulation of surpluses and the carry-over of unspent funds at the end of each financial year;

• Improve the quantity and quality of labour market information received by Setas in the form of WSPs, ATRs and PIVOTAL training reports, to inform planning;

•Promote National Qualifications Framework (NQF) registered and quality assured PIVOTAL programmes that address priority scarce and critical skills needs identified in sector skills plans; and

• Create a framework within which expanded use is made of public education and training providers for the provision of skills development programmes.

There is a clear focus on PIVOTAL programmes, which are professional, vocational, technical and academic learning programmes that result in qualifications or part qualifications on the NQF.

The regulations further include a requirement for an additional section of the WSP and ATR for disclosure on PIVOTAL training.

There have been negative comments from employers regarding the new grant regulations. Although they had expected a reduction in mandatory grants, they had not anticipated such a large difference. The new grant regulations are to take effect on 1 April next year.

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