Discretionary grants 2026 are SETA-awarded funds that reimburse employers for accredited training delivered to their staff — covering learnerships, bursaries, skills programmes and PIVOTAL interventions. To access them in 2026, your business must be SDL-registered, have a submitted Workplace Skills Plan (WSP) and Annual Training Report (ATR), and partner with accredited providers. This guide explains the rules, the deadlines and how BOTI helps you turn training spend into funded skills development.
If your organisation pays the Skills Development Levy but leaves discretionary funding on the table each year, you are effectively subsidising competitors who claim theirs. The good news: the application logic is predictable, and with the right training partner the paperwork becomes manageable.
The business problem discretionary grants 2026 solve
Every employer with a payroll above R500,000 pays the Skills Development Levy (SDL) at 1% of payroll to SARS. That money flows to your SETA, which redistributes it through two routes:
- Mandatory grant — up to 20% of your levy, returned for submitting a compliant WSP/ATR on time.
- Discretionary grant — the larger pool (typically up to 49.5% of the levy plus surpluses), awarded at the SETA’s discretion against national scarce- and critical-skills priorities.
The problem most SA businesses face is twofold: the cash cost of upskilling teams, and the B-BBEE pressure to demonstrate genuine skills development for Black employees. Discretionary grants address both. They reimburse a meaningful share of accredited training costs, and the resulting training generates Skills Development scorecard points on your B-BBEE certificate. Used well, the same training spend works three times — building capability, recovering levy money, and lifting your scorecard.
Who this is for
This is for SA corporate training buyers responsible for funding and compliance:
- HR, L&D and Skills Development Facilitators (SDFs) who own the WSP/ATR submission.
- Business owners and finance managers who want to recover levy spend and reduce the net cost of training teams.
- Operations and department managers building scarce-skills pipelines in their divisions.
- B-BBEE and transformation officers targeting Skills Development scorecard points.
It is not aimed at individual job-seekers or students. The focus throughout is on training your existing staff and teams, and on the corporate funding mechanisms that make that affordable.
What discretionary grants 2026 cover (the essentials)
Think of this as the working outline every employer should master before the application window:
1. Eligibility and registration
You must be registered for SDL with SARS, levy-compliant, and linked to the correct SETA for your core business activity. A nominated, registered SDF is required.
2. The WSP and ATR
The Workplace Skills Plan sets out your planned training for the coming year; the Annual Training Report evidences what you delivered in the past year. Both are submitted through your SETA’s online system and are the gateway to all grant funding.
3. PIVOTAL programmes
Discretionary funding favours PIVOTAL training — Professional, Vocational, Technical and Academic learning that leads to a qualification or part-qualification. Many SETAs require a minimum share of your plan to be PIVOTAL to qualify.
4. Scarce and critical skills alignment
Applications that map to your SETA’s published Sector Skills Plan priorities score higher. Generic, non-accredited workshops generally do not qualify.
5. Learnerships, bursaries and skills programmes
The classic discretionary-grant vehicles — funded learnerships (employed and unemployed), bursaries, internships and accredited skills programmes for your staff.
6. Documentation and claims
Proof of training, attendance, accredited certificates, learner agreements and financials underpin every claim. Weak record-keeping is the most common reason grants are clawed back.
Key 2026 dates and rules at a glance
| Item | What employers must know |
|---|---|
| SDL rate | 1% of total payroll, paid monthly to SARS |
| Mandatory grant | Up to 20% of levy, for on-time WSP/ATR |
| Discretionary grant | Larger discretionary pool, awarded against priorities |
| WSP/ATR deadline | Typically 30 April each year (confirm your SETA’s exact date) |
| Eligibility | SDL-registered, levy-compliant, registered SDF, accredited training |
| PIVOTAL focus | Qualification-linked learning prioritised |
| Accreditation | Training must be delivered via a relevant SETA/QCTO-accredited provider |
Always confirm the precise application windows and grant percentages on your own SETA’s website, as criteria and deadlines vary by sector and can change year to year. Treat the above as general guidance, not legal or financial advice.
How accredited training unlocks the funding
Here is the part many employers miss: discretionary grants reimburse accredited training, not just any course. To convert a grant application into actual funding, the training you list in your WSP and deliver during the year must be recognised by your SETA or the QCTO.
BOTI’s role is to supply that accredited, qualification-aligned training so your application stands up to scrutiny. When your planned interventions are accredited, PIVOTAL-aligned and properly documented, your WSP is materially stronger and your discretionary claim far more defensible.
In-content next step: not sure whether your current training plan qualifies? Request a 15-minute callback from a BOTI skills-funding consultant and we’ll map your spend to the grants available.
Delivery formats and national reach
BOTI delivers across South Africa and remotely, so geography is never a barrier to building a fundable training plan:
- In-house / on-site at your premises — ideal for whole-team upskilling.
- Public scheduled classroom sessions for smaller groups.
- Virtual instructor-led (live online) training for distributed and remote teams.
- National coverage — Johannesburg, Pretoria, Cape Town, Durban and surrounds, plus remote delivery nationwide.
Each format produces the accredited certificates and attendance records you need for both your ATR and your grant claim.
Accreditation
BOTI is an accredited training provider — Services SETA 12582, MICT SETA ACC/2016/07/0045, and a QCTO Quality Partner. Accredited delivery is what makes training count toward discretionary-grant applications, B-BBEE Skills Development points and your Annual Training Report — which is precisely why accreditation sits at the centre of any serious 2026 funding strategy. Note that the SETA unit-standard qualifications BOTI offers are migrating to the new QCTO system, with last enrolment by 30 June 2026; accredited enrolment is available now, so please confirm current accreditation for your chosen programme when you book.
Funding: Skills Development budget and B-BBEE points
Two funding levers run in parallel, and discretionary grants 2026 strengthen both:
-
Recovering your Skills Development budget. Levy money you already pay can be partly recovered through mandatory and discretionary grants when you train through accredited providers and submit compliant reports — lowering the net cost of upskilling staff.
-
B-BBEE Skills Development points. Accredited training of Black employees feeds the Skills Development element of your scorecard. (Note the related compliance figures: the B-BBEE skills-development target is 6% of the leviable amount, while the SDL itself is 1% of payroll — two different numbers that are often confused.)
For organisations bidding on tenders, strong skills development also supports your competitive position. Remember that tender preference under PPPFA 2022 is scored on specific goals — including HDI ownership by race, gender and disability, and RDP objectives — rather than a generic B-BBEE level, and that the Public Procurement Act 28 of 2024 introduces set-asides. A credible, funded skills pipeline reinforces the transformation story behind those bids.
Why BOTI
- 450 courses spanning leadership, management, finance, IT, soft skills and compliance — broad enough to build a complete, PIVOTAL-aligned WSP.
- Trusted by leading SA organisations, including Sasol, Glencore and the City of Johannesburg.
- Flexible delivery — in-house, public and live-online, nationwide.
- Funding-aware design — programmes structured to support your WSP/ATR, discretionary-grant claims and B-BBEE scorecard.
- Consultative support — we help you align training to scarce-skills priorities so applications land well.
Explore related BOTI resources to build your 2026 plan: our SETA grants for employers guide (cluster pillar), Skills Development Facilitator (SDF) training, accredited learnerships for employers, and B-BBEE skills development training. When you’re ready to commit training to your WSP, head to the BOTI course catalogue and booking page.
Frequently asked questions
1. What is the difference between a mandatory and a discretionary grant in 2026?
The mandatory grant returns up to 20% of your levy automatically when you submit a compliant WSP/ATR on time. The discretionary grant is a larger, competitive pool the SETA awards against national scarce- and critical-skills priorities, usually for learnerships, bursaries and PIVOTAL programmes. You generally need a compliant WSP/ATR to be eligible for either.
2. Do we have to pay the SDL to qualify for discretionary grants 2026?
In practice, yes — discretionary grants are funded from levy income, so SDL-registered, levy-compliant employers are the primary applicants. Employers below the R500,000 payroll threshold who are not levy-paying have limited access and should speak to their SETA about alternatives.
3. What is the WSP/ATR deadline for 2026?
For most SETAs the submission deadline is 30 April, but exact dates vary by sector. Confirm your SETA’s published window early, because a late or non-compliant submission disqualifies you from both grants for that cycle.
4. Does BOTI training qualify for discretionary-grant funding?
BOTI is an accredited training provider — Services SETA 12582, MICT SETA ACC/2016/07/0045, and a QCTO Quality Partner — which is the type of training discretionary grants are designed to support. Many of BOTI’s unit-standard qualifications are accredited through the Services SETA and MICT SETA and are migrating to the new QCTO system (last enrolment 30 June 2026), so accredited enrolment is available now — please confirm current accreditation when you book. Whether a specific intervention is funded still depends on your SETA’s criteria and your own WSP, so we help you align courses to qualifying, PIVOTAL-aligned priorities.
5. How does discretionary-grant training affect our B-BBEE scorecard?
Accredited training of Black employees earns points on the Skills Development element of your B-BBEE scorecard, separate from any grant cash you recover. The skills-development target is 6% of the leviable amount, while the SDL is 1% of payroll — so the same accredited programme can both recover levy funding and lift your scorecard.
Turn your 2026 levy into funded skills
Don’t let another cycle pass with discretionary funding unclaimed. Request a quote or a free 15-minute callback and a BOTI consultant will review your current training plan, flag what qualifies, and help you structure an accredited, PIVOTAL-aligned WSP for 2026.
Request a quote / book a 15-minute callback — or download our free SETA Grants Readiness Checklist to see how grant-ready your business is before the next deadline.
Call BOTI on 011-882-8853 or visit boti.co.za to get started.
This article offers general guidance on skills-development funding and B-BBEE, not legal or financial advice. Confirm current criteria, percentages and deadlines with your SETA.
