LGSETA: What the Local Government SETA Does (Levies, Grants, Learnerships)

LGSETA stands for the Local Government Sector Education and Training Authority. It is one of South Africa’s 21 SETAs. It collects skills development levy grants from employers in the local government sector and uses them to fund training, learnerships and other skills programmes for municipal staff, councillors and unemployed people who want to work in the sector.

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This guide covers what LGSETA is and what it does. It explains how the levy, mandatory grants and discretionary grants work, how a learnership runs today, and what “LGSETA courses” means now that the QCTO quality-assures occupational qualifications. If you manage people in a municipality and want a registered qualification, BOTI offers the National Certificate: Generic Management (NQF Level 5) and other options on its SETA qualifications page.

What is LGSETA? The meaning in plain terms

LGSETA is the SETA for local government. It was set up in 2000 under the Skills Development Act 97 of 1998. It falls under the Department of Higher Education and Training (DHET), and the Minister of Higher Education and Training is the executive authority for all SETAs.

LGSETA serves people who work in, or want to work in, local government:

  • municipal employees at all levels
  • councillors and traditional leaders
  • unemployed people who want skills and workplace experience in the sector

LGSETA works with organised local government, the national department responsible for cooperative governance and traditional affairs, and the municipal trade unions. Together they shape the skills priorities for the sector.

What LGSETA does

Like the other SETAs, LGSETA has five main roles:

  • Sector skills planning. It researches which skills the local government sector needs and publishes these in its Sector Skills Plan.
  • Levy grants. It receives its share of the skills development levy from employers in its sector and pays out mandatory and discretionary grants.
  • Funding learning programmes. It funds learnerships, internships, apprenticeships and bursaries that match its sector priorities.
  • Quality partnership with the QCTO. SETAs act as Quality Partners of the Quality Council for Trades and Occupations (QCTO) under signed service level agreements.
  • Qualification development. Under the Minister’s June 2026 Directive, SETAs remain accountable for developing, replacing and implementing occupational qualifications and skills programmes.

LGSETA’s focus areas have included leadership development, environmental practice, local economic development, road traffic law enforcement, public finance management, administration and ward committee governance. The Sector Skills Plan on LGSETA’s own website shows the current priorities.

Who pays the skills levy into LGSETA

The Skills Development Levy (SDL) is 1% of payroll.[1] Employers pay it monthly through SARS. Each levy-paying employer is linked to one SETA based on its main activity. Employers whose activity falls in the local government sector, such as municipalities and municipal entities, are linked to LGSETA. If you are unsure which SETA your organisation falls under, check your SDL registration or ask LGSETA directly.

The levy is split as follows:

  • 80% goes to the SETA: 49.5% for discretionary grants, 20% for mandatory grants, 10% for administration and 0.5% for the QCTO.[2]
  • 20% goes to the National Skills Fund[2], which funds national skills priorities.

How LGSETA grants work

Mandatory grants

The mandatory grant is 20% of an employer’s levy.[2] It is not automatic. To qualify, the employer must:

  • submit its Workplace Skills Plan (WSP) and Annual Training Report (ATR) on time
  • be up to date with its SDL payments

The WSP and ATR are due by 30 April each year.[2] Mandatory grant money that is not claimed moves to discretionary funding by 15 August.[2]

The WSP and ATR also give LGSETA the data it uses for its Sector Skills Plan. Accurate submissions therefore shape what the SETA funds later.

Who prepares the WSP and ATR

In most organisations a Skills Development Facilitator (SDF) prepares and submits the WSP and ATR. The WSP is the employer’s training plan for the coming year. The ATR reports on training actually completed in the previous year. Staff who take on this role can build the practical skills in BOTI’s Skills Development Facilitator (SDF) Training Course.

Discretionary grants

Discretionary grants fund projects that address the sector’s priority skills. LGSETA decides how to allocate them, in line with its Sector Skills Plan and Annual Performance Plan. They typically fund learnerships, internships, apprenticeships and bursaries.

A large share goes to PIVOTAL programmes. PIVOTAL stands for Professional, Vocational, Technical and Academic Learning. These are programmes that lead to qualifications or part-qualifications on the National Qualifications Framework (NQF).[3] Each funding window has its own rules and closing dates, which LGSETA publishes on its website.

LGSETA learnerships

A learnership combines structured learning with practical work experience. It must:

  • include a structured learning component
  • include practical work experience
  • relate to an occupation
  • lead to a registered qualification when completed

Learners can be current employees or unemployed people. They must meet the entry requirements of the qualification and the selection requirements of the employer.

How a learnership runs today

  1. The employer plans the learnership, usually as part of its WSP, and may apply for discretionary grant funding.
  2. The training provider is QCTO-accredited for the qualification. For a legacy qualification still in its teach-out period, the provider may instead hold accreditation from the SETA that originally accredited it.
  3. The employer advertises the opportunity, and learners apply and go through its selection process.
  4. The learner, employer and provider sign a learnership agreement. An unemployed learner also signs a fixed-term employment contract with the employer.
  5. The provider delivers the knowledge and practical components, and the employer provides the workplace experience and mentoring.
  6. The provider runs formative and internal summative assessments.
  7. For an occupational qualification, the learner then writes the External Integrated Summative Assessment (EISA) at a QCTO-accredited assessment centre.
  8. Learners who pass the EISA receive a QCTO Occupational Certificate.

LGSETA courses and qualifications under the QCTO model

People who search for “LGSETA courses” usually want training that the SETA recognises or funds. LGSETA does not run classes itself. It funds training that accredited providers deliver. How that training is quality-assured has changed.

Occupational qualifications and skills programmes

The QCTO now accredits providers for occupational qualifications, part-qualifications and skills programmes, and providers apply to the QCTO directly. The two routes end differently:

  • Full and part-qualifications end in an EISA and a QCTO Occupational Certificate.
  • Skills programmes are recorded by the QCTO and end in a Final Integrated Supervised Assessment (FISA).

BOTI is a QCTO-accredited Skills Development Provider. You can see its options on the QCTO Occupational Certificates and QCTO Skills Programmes pages. For administrative and office management roles in a municipality, the Occupational Certificate: Office Supervisor is one example. Check the last date for enrolment shown on each course page.

Legacy (pre-2009) qualifications

Many older qualifications in the local government sector were unit-standard qualifications registered before 2009. These legacy qualifications are being phased out, but there is no single national cut-off date. In June 2026 the Minister granted final, qualification-by-qualification extensions of 6 to 24 months for selected pre-2009 qualifications.[4] The Directive was published in Government Gazette 54858 on 17 June 2026.[4]

Before you enrol, check the qualification’s SAQA record for its last date for enrolment and last date for achievement. Qualifications already awarded remain valid and recorded on the National Learners’ Records Database.

The National Certificate: Generic Management (SAQA ID 59201) is one example of how this works:

  • its SAQA record shows a last date for enrolment of 30 June 2028[5]
  • its last date for achievement is 30 June 2031[5]
  • its replacement is the Higher Occupational Certificate: Customer Service Manager

LGSETA bursaries

LGSETA has offered bursaries to students studying towards careers in local government at public universities and TVET colleges, in fields linked to its sector priorities. The criteria, required documents and closing dates can change from one funding cycle to the next. For current details and the official application process, go to LGSETA’s own website. Be wary of anyone who asks for payment to submit a SETA bursary application on your behalf.

Will LGSETA change?

LGSETA is still one of 21 SETAs, and the current SETA licence period runs from 1 April 2020 to 31 March 2030. The President announced SETA rationalisation in the State of the Nation Address on 12 February 2026. In April 2026, DHET said consolidation is one of the options it is modelling for Cabinet. No final decision had been published by October 2026, so employers should keep submitting their WSP and ATR to LGSETA as usual.

Training options for municipal teams

Municipalities usually combine accredited qualifications for career development with short courses for immediate skills gaps, such as supervision, report writing, minute taking or project planning. BOTI’s corporate training programmes and short courses cover these topics. They can be planned into your WSP alongside accredited routes.

Frequently asked questions

What is the meaning of LGSETA?

LGSETA stands for the Local Government Sector Education and Training Authority. It is one of South Africa’s 21 SETAs, set up under the Skills Development Act, and it funds and plans skills development for municipal employees, councillors, traditional leaders and unemployed people in the local government sector.

Does LGSETA offer courses?

LGSETA does not run classes itself. It funds learnerships, internships, bursaries and other programmes that accredited providers deliver. Providers of occupational qualifications, part-qualifications and skills programmes are accredited by the QCTO, and legacy qualifications can only be offered until their last date for enrolment on the SAQA record.

How do employers claim LGSETA grants?

Levy-paying employers claim the mandatory grant, which is 20% of their levy, by submitting a Workplace Skills Plan and Annual Training Report by 30 April and staying up to date with their levy payments. Unclaimed mandatory grant money moves to discretionary funding by 15 August. Discretionary grants are applied for separately during LGSETA’s funding windows.

How do I apply for an LGSETA bursary or learnership?

Bursary criteria and closing dates change from cycle to cycle, so use the current information and application process on LGSETA’s own website. Learnerships are advertised by employers, often municipalities, and you apply through the employer’s selection process.

Is LGSETA being merged with other SETAs?

Not as at October 2026. SETA rationalisation was announced in February 2026 and options, including consolidation, are being prepared for Cabinet, but no merger list has been published. The current SETA licence period runs to 31 March 2030.

For municipal managers who lead supervisors and team leaders, BOTI offers the National Certificate: Generic Management (NQF Level 5), a legacy Services SETA qualification open to new enrolment until 30 June 2028, according to its SAQA record.[5] Call BOTI on 011 882 8853 or email [email protected]. Training runs in-house at your premises, at BOTI’s venue in Sunningdale, Johannesburg, or live online.

Sources

  1. Skills Development Levy – South African Revenue Service (SARS), 2026.
  2. Mandatory Grants – Health and Welfare SETA (HWSETA), 2026.
  3. Grants Policy 2025/26 – merSETA, 2024.
  4. Directive on the implementation of transitional arrangements for pre-2009 qualifications (Government Gazette 54858) – Minister of Higher Education and Training, 17 June 2026.
  5. SAQA qualification record 59201: National Certificate: Generic Management – SAQA, 2026.

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