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Discretionary grants in 2026 are SETA funds, paid from the Skills Development Levy, that employers can apply for to fund PIVOTAL training such as learnerships, bursaries, internships and skills programmes for staff and unemployed learners. To be considered, your business must normally be registered for the levy, up to date with payments, have its Workplace Skills Plan (WSP) and Annual Training Report (ATR) submitted by 30 April[1], and train through providers accredited for the programme. BOTI’s accredited QCTO and SETA training programmes are built for exactly this kind of funded plan.
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Many organisations pay the Skills Development Levy every month but never apply for the discretionary share that could fund their training. The process follows a predictable annual cycle. With good records and a clear training plan, the paperwork is manageable. This guide explains the rules, the deadlines and where BOTI fits in.
The business problem discretionary grants 2026 solve
Every employer with an annual payroll above R500,000 pays the Skills Development Levy (SDL) at 1% of payroll to SARS[2]. The SDL rate for 2026 is unchanged at 1%. The levy is split as follows[1]:
- 49.5% to SETA discretionary grants
- 20% to mandatory grants
- 10% to SETA administration
- 0.5% to the QCTO
- 20% to the National Skills Fund
For employers, that means two grant routes:
- Mandatory grant: 20% of the levies you paid, returned to you when your WSP/ATR is submitted by 30 April and your levy payments are up to date[1].
- Discretionary grant: the larger pool, which also receives unclaimed mandatory grant money by 15 August each year[1]. Each SETA awards it at its discretion against the priorities in its Sector Skills Plan.
Most South African businesses face two pressures at once. One is the cash cost of upskilling teams. The other is the need to show real skills development for Black employees on the B-BBEE scorecard. Discretionary grants help with the first, because they can fund a share of qualifying training. The training itself can also be reported under the Skills Development element of your scorecard. Your verification agency decides how it is recognised.
Who this is for
This guide is for South African 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 responsible for the Skills Development element of the scorecard.
It focuses on training your existing staff and on the employer funding mechanisms that make that affordable. If you are an individual looking for a SETA bursary or learnership, see the section on applications further down.
What discretionary grants 2026 cover (the essentials)
These are the points every employer should understand before the application window opens:
1. Eligibility and registration
You must be registered for the SDL with SARS, be up to date with levy payments, and be linked to the correct SETA for your core business activity. You also need a nominated Skills Development Facilitator who prepares and submits your plans.
2. The WSP and ATR
The Workplace Skills Plan sets out your planned training for the coming year. The Annual Training Report shows what you delivered in the past year. Both are submitted through your SETA’s online system, and they are your entry point to grant funding. Our guide to what a Workplace Skills Plan is explains the contents in more detail.
3. PIVOTAL programmes
Discretionary funding is directed mainly at PIVOTAL programmes. PIVOTAL stands for Professional, Vocational, Technical and Academic Learning, meaning programmes that result in qualifications or part-qualifications on the National Qualifications Framework[3]. Each SETA’s grant policy sets out how it weighs PIVOTAL and other programmes.
4. Scarce and critical skills alignment
Applications that match your SETA’s published Sector Skills Plan priorities are more likely to succeed. Generic, non-accredited workshops are generally not funded through discretionary grants, although you still report them in your ATR.
5. Learnerships, bursaries and skills programmes
The usual discretionary-grant vehicles are:
- funded learnerships for employed and unemployed learners;
- bursaries;
- internships;
- QCTO skills programmes and occupational certificates for your staff.
6. Documentation and claims
Every claim rests on your records:
- proof of training and attendance registers;
- certificates or statements of results;
- learner agreements;
- financial records.
Incomplete records put a grant at risk, so keep them from the first day of training.
Key 2026 dates and rules at a glance
| Item | What employers must know |
|---|---|
| SDL rate | 1% of total payroll, paid monthly to SARS[2] |
| Mandatory grant | 20% of levies paid, for a WSP/ATR submitted by 30 April with levies up to date[1] |
| Discretionary grant | 49.5% of the levy plus unclaimed mandatory grants (moved by 15 August), awarded against SETA priorities[1] |
| WSP/ATR deadline | 30 April each year (some SETAs open the window on 1 February)[3] |
| Eligibility | SDL-registered, levy-compliant, nominated SDF, qualifying training |
| PIVOTAL focus | Programmes that result in qualifications or part-qualifications are prioritised |
| Accreditation | QCTO accreditation for occupational qualifications, part-qualifications and skills programmes; SETA accreditation only for legacy qualifications still open for enrolment |
Always confirm the exact application windows and criteria on your own SETA’s website, because discretionary grant rules vary by sector and can change from year to year. Our post on the WSP submission deadline covers the timing in more depth. Treat this table as general guidance, not legal or financial advice.
The SETA landscape in 2026
There are still 21 SETAs. They fall under the Department of Higher Education and Training. Their current licence period runs from 1 April 2020 to 31 March 2030.
SETA rationalisation was announced in the State of the Nation Address on 12 February 2026, but no merger list had been decided at the time of writing. For now, apply through the SETA your business is registered with.
SETAs still collect and pay out levy grants. They also act as Quality Partners to the QCTO. Accreditation for the new occupational system is granted by the QCTO.
How accredited training opens the funding route
Many employers miss one point: discretionary grants fund qualifying, accredited programmes, not just any course. To turn an application into funding, the training you list in your WSP and deliver during the year must suit your SETA’s criteria. It must also be offered by a provider accredited for that programme.
BOTI supplies accredited options, namely QCTO skills programmes and QCTO occupational certificates, alongside its legacy Services SETA qualifications. When your planned interventions are accredited, PIVOTAL-aligned and properly documented, your WSP is stronger and your discretionary application easier to support.
Next step: not sure whether your current training plan qualifies? Ask BOTI to review your training plan and we will show you which programmes match the funding routes your SETA offers.
SETA bursaries and learnership applications in 2026
Many people search for SETA bursary and learnership applications for 2026 and 2027. BOTI does not award SETA bursaries or run a learnership application portal.
SETAs and employers advertise their bursaries, learnerships and requirements on their own websites and channels. Individuals should apply directly through those. Requirements, closing dates and documents differ per SETA and per programme.
Employers are a different case. They can host learnerships for their own staff or for unemployed learners and apply for discretionary funding to support them. BOTI can help you choose the QCTO occupational certificates that suit your teams and plan them into your WSP. Read more in our guide to SETA learnerships.
Delivery formats
BOTI delivers training in three ways, so location does not have to limit a fundable training plan:
- In-house at your premises, which suits whole-team upskilling.
- At BOTI’s venue in Sunningdale, Johannesburg.
- Live online, instructor-led training for distributed and remote teams.
Every format produces the attendance records you need for your ATR. Accredited programmes also include the QCTO assessment and certificate described below.
Accreditation
BOTI is a QCTO-accredited Skills Development Provider and a Level 1 B-BBEE contributor. Its legacy Services SETA qualifications are accredited under Services SETA number 12582.
For occupational qualifications, part-qualifications and skills programmes, providers are accredited by the QCTO, not the SETA. Occupational certificates end in an External Integrated Summative Assessment (EISA). Skills programmes end in a Final Integrated Supervised Assessment (FISA) run by BOTI. In both cases the QCTO issues the certificate.
There is no single national cut-off date for legacy qualifications. The final Directive on legacy qualifications was published in Gazette 54858 on 17 June 2026[4]. Dates for BOTI’s programmes:
- BOTI’s Services SETA qualifications take new enrolments until 30 June 2028, with completion by 30 June 2031[5].
- The FETC: New Venture Creation takes enrolments until 30 June 2027, with completion by 30 June 2030[5].
- The National Certificate: IT End User Computing 61591 closed to new learners on 30 June 2026[6].
BOTI’s QCTO occupational certificates also have last enrolment dates:
- Office Administrator, Management Assistant and Project Manager: 30 December 2026
- Office Supervisor: 31 December 2026
- Sales Representative: 30 January 2030
- Entrepreneur part-qualification: 3 June 2031
Build these dates into your 2026 WSP so that enrolment happens in time.
Funding: Skills Development budget and B-BBEE
Two levers run in parallel, and discretionary grants 2026 support both:
-
Recovering your Skills Development budget. You can recover part of the levy you already pay through mandatory and discretionary grants. To do so, submit compliant reports on time and plan qualifying, accredited programmes. This lowers the net cost of upskilling staff.
-
The B-BBEE Skills Development element. Training spend on Black employees is reported under the Skills Development element of your scorecard. Your verification agency assesses how it counts. Do not confuse two figures: the B-BBEE skills development spend target is 6% of the leviable amount[7], while the SDL itself is 1% of payroll[2].
For more on how the two connect, see our guide to B-BBEE skills development.
Why BOTI
- 333 courses across leadership, management, finance, IT, soft skills and compliance, alongside QCTO occupational certificates and skills programmes. That range is wide enough to build a complete WSP.
- Clients include Sasol, Glencore and the City of Johannesburg.
- Rated 4.8 on Google from more than 770 reviews.
- Flexible delivery: in-house, at BOTI’s Sunningdale venue, or live online.
- Funding-aware planning: programmes structured to fit your WSP/ATR and discretionary grant applications.
Related BOTI resources for your 2026 plan:
- our SETA grants for employers guide;
- our explainer on the Skills Development Levy.
Frequently asked questions
What is the difference between a mandatory and a discretionary grant in 2026?
The mandatory grant pays back 20% of the levies you paid when your WSP and ATR are submitted by 30 April and your levy payments are up to date. The discretionary grant is a separate, competitive pool that each SETA awards against its sector priorities, mostly for PIVOTAL programmes such as learnerships, bursaries, internships and skills programmes. Unclaimed mandatory grant money moves to discretionary funding by 15 August.
What is the SDL rate in 2026?
The Skills Development Levy remains 1% of payroll, paid monthly to SARS. Of that 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. Employers below the R500,000 annual payroll threshold who do not pay the levy should ask their SETA what support is open to them.
What is the WSP/ATR deadline for 2026?
The WSP and ATR are due by 30 April each year and are submitted through your SETA’s online system. Some SETAs open the submission window on 1 February. A late or incomplete submission costs you the mandatory grant for that cycle and can count against discretionary applications, so confirm your SETA’s window early.
Does BOTI training qualify for discretionary-grant funding?
BOTI is a QCTO-accredited Skills Development Provider, and its legacy Services SETA qualifications are accredited under Services SETA number 12582. QCTO occupational certificates, QCTO skills programmes and legacy qualifications still open for enrolment are the kind of PIVOTAL training discretionary grants are designed to support. Whether a specific intervention is funded depends on your SETA’s criteria and your WSP. BOTI’s non-accredited short courses build skills and are reported in your ATR, but they are not PIVOTAL programmes.
How do SETA bursary and learnership applications work in 2026?
BOTI does not award SETA bursaries or run learnership application portals. SETAs and employers advertise bursaries, learnerships and their requirements on their own websites and channels, so individuals should apply directly through those. Employers who want to host learnerships can ask BOTI which QCTO occupational certificates suit their teams and how to plan them in the WSP.
Turn your 2026 levy into funded skills
Do not let another cycle pass with discretionary funding unclaimed. Request a quote and BOTI will review your current training plan, flag what qualifies and help you structure an accredited, PIVOTAL-aligned WSP for 2026. You can also ask BOTI to help you check how grant-ready your business is before the next 30 April deadline.
The person who prepares your WSP and ATR has the most influence on how much funding you claim. BOTI’s Skills Development Facilitator (SDF) Training Course covers this role in 3 days. 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. Call BOTI on 011 882 8853 or email [email protected] to plan your 2026 training.
This article offers general guidance on skills-development funding and B-BBEE, not legal or financial advice. Confirm current criteria and deadlines with your SETA.
Planning for discretionary and mandatory grants? Explore BOTI’s QCTO occupational certificates or request a tailored training proposal — rated 4.8 from 770+ Google reviews.
Sources
- Mandatory Grants – Health and Welfare SETA (HWSETA), 2026.
- Skills Development Levy – South African Revenue Service (SARS), 2026.
- Grants Policy 2025/26 – merSETA, 2024.
- Directive on the implementation of transitional arrangements for pre-2009 qualifications (Government Gazette 54858) – Minister of Higher Education and Training, 17 June 2026.
- Pre-2009 Extended Qualifications – South African Qualifications Authority (SAQA), June 2026.
- SAQA qualification record 61591: National Certificate: Information Technology: End User Computing – SAQA, 2026.
- 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.