In South Africa, Mandatory and Discretionary Grants are powerful tools used to promote workplace training and create job opportunities—especially for unemployed individuals.
These grants are made available through the Sector Education and Training Authorities (SETAs) and are designed to encourage employers to actively invest in skills development within their organisations.
Here’s How It Works:
If you’re an employer who:
- Pays the 1% Skills Development Levy to your relevant SETA, and
- Submits both your Workplace Skills Plan (WSP) and Annual Training Report (ATR) on time,
—you could qualify for financial grants that support your employee training efforts.
Why It Matters:
- Mandatory Grants help you recover a portion of your skills development levy by showing that you’re implementing structured training.
- Discretionary Grants fund learning programmes like internships, learnerships, apprenticeships, and bursaries—often targeting unemployed youth or priority skills sectors.
Who Is Required to Pay Skills Development Levies?
If you’re an employer in South Africa, you may be required to contribute to the Skills Development Levy (SDL)—a government initiative aimed at funding skills training across the country.
Here’s who must pay:
- You must be registered with SARS for PAYE (Pay As You Earn); and
- Your annual payroll (total of all salaries, wages, bonuses, commissions, etc.) is more than R500,000; or
- You employ 50 or more staff members, regardless of payroll amount.
How much do you pay?
Your skills levy contribution is 1% of your total leviable amount, which is based on each employee’s PAYE remuneration (i.e., gross salary minus any taxable deductions).
This contribution is mandatory and must be paid to your relevant Sector Education and Training Authority (SETA) via SARS. By doing so, your business becomes eligible for skills development grants and helps grow South Africa’s workforce through training and upskilling initiatives
B-BBEE Skills Development Portfolio Management
Don’t resent your B-BBEE spend. Let’s achieve real transformation together. As specialists, we fully manage your B-BBEE Skills Development portfolio. Transformation, upliftment, and sustainability are ingrained in our business approach.
We offer a turn-key solution:
01.
B-BBEE Skills Development
Our team identifies skills development gaps through a comprehensive skills audit and offers tailored solutions to improve your company’s contribution to Skills Development, which will count towards your B-BBEE scorecard.
Understanding B-BBEE Skills Development
Who needs a B-BBEE Certificate?
A B-BBEE certificate is essential if your business intends to trade in South Africa. It is simply the mandate to increase the number of previously disadvantaged people who own, manage, control, and gain employment in South Africa’s economy.
A B-BBEE certificate applies to Qualifying Small Enterprise (QSE) businesses with an annual revenue of R10 million to R50 million and less than 51% black-owned. QSEs may, however, use a BEE affidavit as a certificate should the business be 100% black-owned (which automatically qualifies you as a level 1 contributor) or 51% black-owned (which automatically qualifies you as a level 2 contributor).
An Exempt Micro Enterprise (EME) is a company with an annual turnover of less than R10 million and that is less than 51% owned. These businesses automatically qualify for a BEE Level 4 rating. Increasing black ownership to 51% or more will qualify an EME as a Level 2 contributor, while 100% black-owned EMEs qualify as Level 1. Exempt Micro Enterprises can submit an affidavit that functions as their B-BBEE Certificate.
Generic businesses have an annual turnover of R50 million or more. To determine their level and status, they must comply with all B-BBEE scorecard elements.
B-BBEE Scorecard Categories Explained:
Your B-BBEE status level is determined by the number of points your business receives across the five B-BBEE elements. The higher your status level, the more your company will receive procurement recognition.
- Ownership (25 pts) – the level of black ownership in your business.
- Management Control (15 pts) – the number of black individuals holding top managerial roles influencing decision-making.
- Skills Development (20 pts + 5 bonus points) – the extent to which your company invests in skills training for your employees, the unemployed, and disabled black individuals. Five (5) bonus points are available when the individuals get absorbed into your company at the end of their leadership program.
- Enterprise and Supplier Development (40 pts) – the amount of spending you put into Preferential Procurement, Enterprise Development, and Supplier Development of small, developing businesses.
- Socio-Economic Development (5pts) – the contribution to a black individual, group of individuals or a community. The contribution can be monetary or nonmonetary.
TOTAL = 118 points
02.
Learnerships & Skills Programs
Our accredited educational institution, one of South Africa’s top training providers, offers 27 accredited learnerships and six skills programs, accommodating 4,500 learners annually with 40 classrooms and 30 certified facilitators.
03.
Student Sourcing & Placement
Our management services include sourcing B-BBEE-related candidates, handling administration, and placing successful individuals internally or through placement partners, ensuring they meet your req
04.
Client Benefits & ROI
We offer quality management and administration of your Skills Development portfolio, ensuring legal compliance with regulatory bodies and sustainable tax relief. Our Education and Training Quality Assurance department ensures legislative delivery of learnerships, directly affecting B-BBEE auditing and tax allowance benefits eligibility.
05.
Grant Applications
Registered businesses must submit Workplace Skills Plans and Annual Training Reports to SETAs to comply with the Skills Development Act. Our team assists in gathering necessary information, accurately reflect education, training, and development activities, and ensure maximum points for the B-BBEE scorecard.
Submit your details in the form below.
Visit SDC Consult Application for SETA Grants
