SETA funding for employers lets South African businesses recover a large share of their Skills Development Levy through mandatory and discretionary grants, then reinvest it in accredited staff training. If your annual payroll exceeds R500,000 you already pay the levy, and this guide shows you how to claim it back and turn it into skills development, B-BBEE points, and a stronger workforce.
This guide covers what SETA funding is, the mandatory and discretionary grant types, how learnership and bursary funding works, and the steps to access funds for your team. It is general guidance to help you plan, not financial, tax, or legal advice.
What Is SETA Funding?
SETA funding is a government initiative that provides financial assistance to businesses and learners for accredited training and skills development programmes. A SETA, or Sector Education and Training Authority, is the regulatory body that oversees skills development within a specific industry sector. South Africa has 21 SETAs, each covering a defined group of industries (for example, the Services SETA, BANKSETA, MerSETA, and the Health and Welfare SETA).
The funding is sourced from the Skills Development Levy (SDL), which employers pay to SARS. SETAs collect a portion of this levy and redistribute it to employers and learners as grants and bursaries that fund recognised qualifications, learnerships, and short courses. To count toward grants, training must be delivered through an accredited provider, that is, one accredited via the relevant SETA or the QCTO.
Why SETA Funding Matters for Employers
For HR, L&D, and business owners, SETA funding is one of the few ways to make staff training effectively self-funding. The main benefits include:
- Productivity improvements — better-trained staff work faster, safer, and with fewer errors.
- Cost reduction through grants — recover part of a levy you already pay instead of leaving it unclaimed.
- Talent attraction and retention — structured development pathways help you keep your best people.
- B-BBEE score enhancement — skills-development spend on accredited training feeds directly into your B-BBEE scorecard.
On the B-BBEE point, note the accurate framing: the Skills Development Levy is 1% of payroll, while the skills-development target on the B-BBEE scorecard is 6% of the leviable amount (not “6% of payroll”). Treat these as separate calculations when you plan your training budget. A strong skills-development score can also support your standing in tenders, although under the PPPFA 2022 regulations procurement preference points are awarded for “specific goals” — HDI ownership (race, gender, or disability) and RDP objectives — rather than for your generic B-BBEE level. The Public Procurement Act 28 of 2024 further enables set-asides for designated groups. This is general guidance, not legal advice.
How the Skills Development Levy (SDL) Works
Employers must pay the SDL monthly if they are registered with SARS and pay more than R500,000 a year in salaries and wages. The levy is 1% of your total payroll, paid to SARS each month, and it is the pool from which SETA grants are funded. The practical takeaway: if you pay the levy but never submit a claim, that money stays with the SETA, so registering and submitting the right documents is how you convert a compulsory tax into a recoverable training budget.
SETA Grants for Employers: Mandatory & Discretionary
There are two core grant types every levy-paying employer should understand. Used together, they recover and amplify a significant portion of your SDL.
Mandatory Grants
Mandatory grants are paid back to levy-paying employers who submit the required skills-planning documents on time. The grant equals 20% of the levies you paid for the year, and to qualify you submit:
- a Workplace Skills Plan (WSP) — your plan for the training your staff will undertake in the coming year, and
- an Annual Training Report (ATR) — a report on the training actually completed in the previous year.
Both are typically submitted to your SETA by the annual 30 April deadline through its online system, and the grant is then reinvested to train your employees. The key requirement is appointing a Skills Development Facilitator (SDF) — internal or outsourced — to compile and submit the WSP/ATR.
Discretionary Grants
Discretionary grants are paid out at the discretion of SETA management to fund scarce- and critical-skills projects aligned to the SETA’s sector priorities. Because they are not automatic, they are usually awarded against applications or open funding windows. They commonly support:
- Learnerships — leading to a full qualification or a part qualification
- Apprenticeships and Internships
- Bursaries
- Adult Basic Education and Training (ABET)
Discretionary grants are where the largest funding amounts sit, and they are the route through which small and medium employers (SMEs) can access support beyond their own modest levy contribution. Because the funds are limited and prioritised, applications that are well-prepared, on time, and aligned to scarce-skills lists tend to succeed.
| Feature | Mandatory Grant | Discretionary Grant |
|---|---|---|
| How much | 20% of levies paid | Variable; set per project/window |
| How awarded | Automatic on WSP/ATR submission | By application, at SETA discretion |
| Main requirement | WSP + ATR by deadline | Aligned to scarce/critical skills |
| Typical use | General staff training | Learnerships, apprenticeships, bursaries |
| Best for | All levy-paying employers | Employers running structured programmes |
Learnership Funding for Employers
Learnerships combine theory and workplace experience leading to a registered qualification, and they are one of the most heavily funded SETA programmes. The funding for a learnership is around R45,500 per learner, depending on the SETA and the qualification.
Learners are also paid a learner allowance (or stipend) by the employer, set by the employer based on affordability, with South African legislation setting minimum levels. Full-time employees who enter a learnership retain their salary, while unemployed learners receive a stipend to assist with expenses such as travel and housing.
For employers, learnerships do double duty: they fund skills development and earn B-BBEE skills-development points, plus potential tax allowances under Section 12H of the Income Tax Act for registered learnership agreements.
SETA Bursaries
SETAs also fund bursaries for both employed and unemployed learners studying scarce-skills disciplines. As an example of how the funding is applied, the Services SETA pays 100% of tuition and books based on the approved amount, and thereafter, subject to any remaining funds, pays the other listed allowances according to its priority listing.
There are two broad bursary types: employed learners enrolled in a part or full qualification, and unemployed learners pursuing NQF Level 5 or higher qualifications.
You can review a worked example in the Services SETA bursary booklet and confirm accreditation contacts via the SAQA website.
How SMEs Can Access SETA Funding
Smaller employers sometimes assume SETA funding is only for large corporates — it is not. Discretionary grants explicitly support SMEs to run learnerships, internships, apprenticeships, bursaries, and ABET. The route for a small business is straightforward: register with the relevant SETA for your sector (with an active SDL registration at SARS), appoint a Skills Development Facilitator to manage your submissions, submit your WSP and ATR to unlock the mandatory grant, apply for discretionary grants during open windows, and deliver through an accredited provider so the spend counts toward grants and B-BBEE.
Step-by-Step: How to Claim SETA Funding
- Confirm you are a levy payer — payroll over R500,000/year means you pay the 1% SDL and qualify for grants.
- Identify your SETA — match your core business activity to one of the 21 SETAs.
- Register on the SETA’s online portal and link your organisation.
- Appoint an SDF to compile the Workplace Skills Plan and Annual Training Report.
- Submit WSP + ATR by 30 April to claim the 20% mandatory grant.
- Watch for discretionary grant windows and apply with a strong, scarce-skills-aligned proposal.
- Deliver training through an accredited provider and keep evidence for B-BBEE and reporting.
To plan the spend, pair your grant claim with accredited corporate training courses and structured options such as learnership programmes and B-BBEE skills-development training that map cleanly to the WSP.
Partner With BOTI to Use Your SETA Funding
BOTI is an accredited South African corporate training provider delivering over 450 courses, with clients including Sasol, Glencore, and the City of Johannesburg. We deliver in-house, on-site, and remote training across Johannesburg, Cape Town, Durban, and Pretoria. Whether you want to recover your mandatory grant, run a learnership, or build a discretionary-grant application, our team can help you turn your levy and grants into the right accredited programmes for your staff.
Free for you: request our Skills Audit / Training Needs Analysis (TNA) template to map your team’s skills gaps before you submit your WSP, and make every rand of your levy work harder.
Request a quote or book a free 15-minute callback, or call BOTI on 011-882-8853 today.
Frequently Asked Questions
What is SETA funding for employers?
SETA funding is financial assistance funded from the Skills Development Levy that employers can claim back as mandatory and discretionary grants to pay for accredited staff training, learnerships, and bursaries within their industry sector.
Which employers qualify for SETA funding?
Any employer registered with SARS that pays more than R500,000 a year in salaries and wages must pay the 1% Skills Development Levy, and is therefore eligible to claim SETA mandatory and discretionary grants.
What is the difference between mandatory and discretionary grants?
The mandatory grant is automatic and equals 20% of the levies you paid, provided you submit a Workplace Skills Plan and Annual Training Report by the deadline. Discretionary grants are larger, awarded at the SETA’s discretion for scarce-skills projects such as learnerships and apprenticeships.
How much SETA funding can I get for a learnership?
Learnership funding is typically around R45,500 per learner, depending on the SETA and qualification, in addition to the B-BBEE and potential Section 12H tax benefits of running a registered learnership.
Do I need a Skills Development Facilitator to claim?
Practically, yes. An SDF (internal or outsourced) compiles and submits your Workplace Skills Plan and Annual Training Report — the documents required to unlock the mandatory grant and support discretionary applications.
How does SETA funding affect my B-BBEE score?
Spend on accredited training, learnerships, and bursaries contributes to the skills-development element of your B-BBEE scorecard. Remember the targets differ: the levy is 1% of payroll, while the B-BBEE skills-development target is 6% of the leviable amount.
This page provides general guidance on SETA funding and is not financial, tax, or legal advice. Confirm current grant amounts, deadlines, and eligibility with your relevant SETA. Accredited training is delivered via the relevant SETA/QCTO.
