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Learnership funding in South Africa comes mainly from the skills levy system. SETAs pay discretionary grants to employers that host learnerships, and employers recover part of their levy through the mandatory grant. Learners usually pay nothing to join and receive a stipend from the host employer. If you are planning learnerships for staff or unemployed people, start by choosing the qualification, such as one of BOTI’s QCTO occupational certificates for learnership programmes.
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BOTI is accredited by the QCTO (Quality Council for Trades and Occupations) as a skills development provider, and is a Level 1 B-BBEE (Broad-Based Black Economic Empowerment) contributor. Plan the training in your Workplace Skills Plan and count it towards your B-BBEE skills development score.
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Learnerships are central to South Africa’s response to unemployment and skills shortages. These structured programmes combine theory with practical workplace experience, so participants work towards a registered qualification while they gain real skills on the job. For organisations, the hardest part is often working out how to pay for them. This article explains where learnership funding comes from, how employers can implement a learnership step by step, and what individual learners should look for.
Understanding the Importance of Learnerships
Learnerships tackle two problems at once: youth unemployment and the shortage of workplace skills. A learner follows structured training and works under supervision. By the end, the learner has a qualification and work experience, which is the combination many employers ask for when they recruit. For the employer, a learnership builds a pipeline of people trained in the company’s own processes. It can also count towards the skills development element of the B-BBEE scorecard.
Funding for Employers
For employers looking for funding to implement learnership programmes, the main options are:
Government Funding Opportunities
Most public money for learnerships flows through the skills levy. Employers pay the Skills Development Levy at 1% of the leviable amount (total remuneration). Employers whose leviable amount over the next 12 months will not exceed R500,000 are exempt[1]. Of the levy, 49.5% goes to SETA discretionary grants, 20% to mandatory grants, 10% to SETA administration, 0.5% to the QCTO and 20% to the National Skills Fund[2]. The Skills Development Act provides for the SETAs, the National Skills Fund and this levy-grant scheme[3]. The SETAs fall under the Department of Higher Education and Training.
Discretionary grants are the main source of learnership funding. Each SETA opens its own funding windows and sets its own criteria. SETAs mainly target PIVOTAL programmes, meaning programmes that lead to qualifications or part-qualifications on the National Qualifications Framework[4]. Grants can cover training costs and learner stipends, but they are never guaranteed. Read the SETA’s grant guidelines carefully and apply as soon as the window opens. For a practical walk-through, see our guides on how to claim SETA funding and discretionary grants.
Tax Incentives
Paying the skills levy is not a tax incentive in itself. What the levy system does offer is the mandatory grant. Employers can claim back 20% of the levies they have paid when they submit their Workplace Skills Plan (WSP) and Annual Training Report (ATR) by 30 April and their levy payments are up to date. Unclaimed mandatory grant money moves to discretionary funding by 15 August[2]. Many SETAs open the WSP/ATR submission window on 1 February[4]. If you are new to the process, read what a Workplace Skills Plan is.
Separately, the Income Tax Act has a learnership allowance for employers that register qualifying learnership agreements. Its conditions and amounts have changed over the years. Confirm the current rules with SARS or your tax practitioner before you build them into your budget. Our article on the learnership tax incentive gives more background.
Private Sector Partnerships
Some companies co-fund learnerships with suppliers, clients or industry partners. A partner may pay for training or offer workplace placements, and the learners gain wider experience. These partnerships work when the objectives, costs and responsibilities are written down in advance, including who hosts the learners and who pays the stipends.
Skills development spend also counts on the B-BBEE scorecard. Under the amended generic Codes, the target for spend on learning programmes for black people is 3.5% of the leviable amount[5]. Sector codes may differ. How a learnership is recognised depends on your verification, so treat any scorecard benefit as a possibility, not a promise.
How to implement a learnership in your company
Learnership implementation follows a predictable sequence. Planning it early makes funding applications much stronger.
- Identify the skills gap from your WSP and choose a registered qualification that closes it.
- Check that your training provider is accredited for that qualification. For occupational qualifications, part-qualifications and skills programmes, accreditation comes from the QCTO. BOTI is a QCTO-accredited Skills Development Provider.
- Check the qualification’s last date for enrolment. For example, the Occupational Certificate: Office Administrator (NQF 5, 445 credits) closes to new enrolments on 30 December 2026[6].
- Apply to your SETA in its discretionary grant window, and register the learnership agreements as the SETA requires.
- Recruit learners, appoint workplace mentors and agree on stipends.
- Run the knowledge, practical and workplace components, and keep evidence of the learners’ progress.
- Prepare learners for the final assessment. Occupational certificates end in an External Integrated Summative Assessment (EISA), and the QCTO issues the certificate.
Read more about hosting a learnership, or look at a qualification that companies often use, the Occupational Certificate: Office Administrator.
Funding for Learners
For individuals who want to join a learnership, or who are looking for funding for skills training, the following steps help.
Research Learnership Opportunities
Learnerships are advertised by employers, government departments and SETAs. Look for programmes that match your interests and the work you want to do. Check the minimum entry requirements, the qualification you will earn and where the workplace component takes place. If you are unemployed, a learnership is one of the few routes that combines training, work experience and a stipend.
Understand Funding Options
Funded learnerships, bursaries and employer sponsorship should be your first options. If you are employed, ask your manager or HR department whether your company has a training budget or SETA grant funding for your role. Consider a loan for skills training only after these options. If you do pay for training yourself, check that the provider is accredited for the qualification you want and that the qualification is still open for enrolment.
Prepare Strong Applications
Tailor each application to the learnership’s requirements. Include a short, clear CV, certified copies of the documents requested and a brief motivation explaining why the programme fits your goals. Apply before the closing date and keep a record of where you applied. Genuine learnerships do not charge application fees. Be wary of anyone who asks for money to secure a place.
Frequently asked questions
How does learnership funding work in South Africa?
Most learnership funding comes through the skills levy system. Employers pay the Skills Development Levy, and SETAs use part of it for discretionary grants that fund learnerships. Employers that submit their Workplace Skills Plan and Annual Training Report on time can also recover part of the levy as a mandatory grant. Each SETA sets its own funding windows and criteria.
Can a company get funding for learnership implementation?
Yes, if the company applies to its SETA during a discretionary grant window and the learnership meets the SETA’s criteria. The SETA usually wants a registered learnership agreement, a qualification on its priority list and a training provider accredited for that qualification. Funding is not guaranteed, so plan the budget before the grant is confirmed.
I’m unemployed. Do I have to pay to join a learnership?
No. Genuine learnerships are free to apply for, and learners usually receive a stipend from the host employer while they train. Be cautious of anyone who asks for an application fee or a payment to secure a place.
Is there a loan for skills training in South Africa?
Some lenders offer education loans, but a loan should be your last option for skills training. First ask your employer about training budgets and SETA grants and look for funded learnerships. Then check that any provider you pay is accredited for the qualification you want.
Conclusion
Securing learnership funding takes planning from both employers and learners. Employers should submit their WSP and ATR on time, apply in SETA grant windows and choose qualifications that are still open for enrolment. Learners should apply for genuine funded programmes and prepare strong applications. The person who usually manages this work in a company is the Skills Development Facilitator. BOTI’s Skills Development Facilitator (SDF) Training Course shows staff how to plan skills development, prepare WSPs and ATRs and run learnerships. Training runs in-house at your premises, at BOTI’s venue in Sunningdale, Johannesburg, or live online. This course is not accredited. It is delivered as a professional skills programme, and delegates receive a BOTI certificate of attendance. If you need an accredited route for learners, browse the SETA qualifications and QCTO occupational certificates. Call BOTI on 011 882 8853 or email [email protected], or request a quote.
Sources
- Skills Development Levy – South African Revenue Service (SARS), 2026.
- Mandatory Grants – Health and Welfare SETA (HWSETA), 2026.
- Skills Development Act 97 of 1998 – South African Government (gov.za), 1998.
- Grants Policy 2025/26 – merSETA, 2024.
- Codes of Good Practice on B-BBEE: Code Series 300, Statement 300 – Skills Development (Government Gazette 42496) – Department of Trade and Industry, 31 May 2019.
- SAQA qualification record 102161: Occupational Certificate: Office Administrator – South African Qualifications Authority (SAQA), 2026.
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