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Skills Development In The Workplace
Skills Development Levy is a tax imposed in South Africa to encourage learning and growth and is calculated on the employer’s pay bill. The funds will be used to develop and enhance the staff’s capabilities.
SDL is issued to registered employers. An employer is required to register once for all different tax forms using the Customer Information System. If the employer requires gross payment of R500 000 for the next 12 months, the employer must pay SDL. If the employer becomes liable, they can enroll with SDL.
The following employers are exempted from the SDL tax:
1. Any employer in the public sector in the national or regional sphere of government. (These employers will be responsible for an amount equal to the levies attributable to their workers’ training and education).
2. Where 80% or more of the budget is financed directly or indirectly by the funds voted by Parliament, it shall be paid directly or indirectly to a national or provincial public body.
3. Any public benefit organization (PBO) which is excluded from paying income tax under the Income Tax Act and which only includes such activities as welfare, humanitarian, health care, religion, philosophy, or public benefit principle, or which only provides funds to the PBO and to which a letter of exemption has been released by the Tax Exemption Unit (TEU).
4. Any municipality to which the Minister of Labor issues an exemption certificate.
If this is the basis for an exemption, these categories of employees must not register to pay SDL.
How much are you going to have to pay?
One percent of the total amount to be paid to employees in salaries (including leave pay, overtime payments, commissions, bonuses, and lump-sum payments).
The employer’s sum deducted should be paid to SARS (EMP201) every month by completing the Monthly Employer Declaration. The EMP201 is a payment document in which the employer declares a cumulative payment in conjunction with the UIF, SDL, PAYE, and Employment Tax Incentive allocations (ETI).
The EMP201 is then pre-populated with a specific payment reference number (PRN), which will bind the actual payment to the relevant EMP201 payment declaration.
How is this charged, and when?
It is charged within seven days of the month-end in which was deducted from the sum. If the last day of payment occurs on a national holiday or a weekend, the payment must be made before the public holiday or the weekend of the last working day.
These are the available payment options:
1. E-filing
2. At one of the branches of the relevant authorized banking institutions.
3. Electronic payments through the web (EFT)
What happens to the SDL Levy?
SETA distributes the levies.
According to regulation, within 21 business days of becoming an employer, the employer must register with the South African Revenue Service (SARS) except if none of the employees is chargeable for regular taxes.
For registration purposes, the employer has submitted an individual registration of the organization’s branches, and each division is considered a separate employer.
An EMP102e form- Payroll Taxes-Application for Branch Registration must be completed and presented to SARS to register as a branch autonomously from the central branch.
Why Is Skills Development Important In South Africa?
Skills development implies more and better prospects. This means that job positions can be considered where unskilled employees would never be able to work. Skills are vital to the development of the economy, the expansion of enterprises, and job creation.
The standard of education in South Africa continues to deteriorate. So many school leavers are becoming less skilled. The shortage of skills among job seekers is one of the reasons for high unemployment. The unskilled job-seeker has limited options than the professional graduates.
South Africa Unique Challenge
South Africa’s education has been unbalanced for decades. The majority of South Africans did not have the skills needed to work in a modern economy. Bantu schooling was deliberately designed to hinder the advancement of Black South Africans. It ensured that they could work as nothing more than gardeners, domestic workers, and day laborers.
A lot of skilled workers have left the country in the run-up to our first democratic election. Over the last twenty-five years, several more skilled workers have left the country. The increase in crime rates and perceived better prospects abroad were the reasons for this migration of skills.
It was also imperative to correct the unjust employment practices of the past. But those who would now take the jobs that had been opened to them had not been qualified with the requisite skills. This problem has never been effectively addressed.
With a change came unskilled workers filling positions that needed skilled workers. Without growing the skills of the workforce, restructuring leads to unskilled employees working in jobs ineffectively.
This can be seen in the billions of Rands expended on outsourcing skills. Hundreds of billions of Rands have been invested practically on consultants and contractors. Those who have the expertise the labor force lacks. There’s a need for change. But it is a significant mistake not to equip South Africa’s workforce with the required skills.
Short, Mid and Long-Term Solutions to Resolve the Crisis of Skills
Short-Term
There is a need to lure skilled workers to come to South Africa. That would imply good incentives and opportunities for expatriates and foreign employees. Prerequisites for eligible individuals should be easy for them to relocate to South Africa. This is something that needs to be strongly considered and enforced.
NGOs are not in that capacity to amend immigration laws directly. They could advocate and educate and influence. But any substantive reform will have to come from the government.
This could be a short-term solution, but it would be necessary. We need the skills that make sure, for example, that hospitals function efficiently. A lack of skills must not undermine necessary skills.
Mid-Term
A mid-term plan would be for organizational roles to be fitted with the requisite skills. These will involve both individuals and management skills. The transition of skills must take place. There should be regular training and workshops. Government agencies specifically need to ensure that their staff has the skills to provide services across the country. Poor service is one of the outcomes of lack of training.
Long-Term
A long-term approach would take a far-sighted plan. South Africa needs to have learners and staff trained with the requisite skills. In the future, they would need several professional staff. They need engineers, teachers, and artisans. They need managers and web developers as well as professional sales staff. One in three jobs could be developed in the next few years. This calls for quick and efficient development of skills.
What skills does South Africa need?
As the country is grappling with high unemployment rates, it is striking to notice that there are not enough eligible candidates for job opportunities. Disturbing reports on the lack of professionals in some fields have received widespread coverage in the recent past, following employer frustrations in seeking sufficiently qualified employees. As a result, many South African employees are now questioning what skills employers are most in-demand for? Here is the latest list of scarce skills in South Africa.
It is important to learn about the skills that are bestselling to determine what to study in college. The current complex working climate also calls for a proper understanding of the importance of modern applications skills. Tragically, some of the courses that thousands of learners take every year are no longer feasible in the new economic system, partially due to modernization. What’s the scarce skill? In short, these are skills for which only a few people are eligible for work. Scarcity also occurs when a vocation is new, and only a few practitioners have appropriate expertise in the field.
Given the postmodern working environment and the massive industrial boom, South Africa is a favorable destination for career growth. The critical skills in South Africa are useful for both local and foreign staff involved in filling on-demand vacancies, so here are the most sought-after jobs in South Africa 2021 based on the list of the essential skills of South Africa.
Information technology and communication
- Information technology and telecommunications directors
- IT project and program managers
- IT business analysts, architects, and systems designers
- Web design and development professionals
- IT specialist managers
- Programmers and software development professionals
- All other ICT professionals not elsewhere classified
Engineering
- Mechanical Engineers
- Structural Engineers
- Civil Engineers
- Electrical Engineers
- Electronics Engineers
- Façade Designer
- Setting Out Engineer
- Site Engineers
- Design and Development Engineers
- Material Scientists
- Production and process engineers
Health professionals and related clinical sciences
- Radiation Therapists
- Vascular technologists
- Radiographers
- Medical Practitioners
- Gastro-Intestinal Technologists
- Industrial Pharmacists
- Physiologists
- Senior health services and public health managers
- Perfusionists
- Clinical Nurse Managers
- Registered Nurses
- Clinical Nurse Specialists
- Audiologists
- Clinical Midwife Managers
- Registered Midwives
- Advanced Nursing Practitioners
- Clinical Midwife Specialists
- PHECC Registered Paramedics
- Advanced Midwife Practitioners
- Orthotists
- Orthoptists
- Prosthetists
- PHECC Registered Advanced Paramedic Practitioners
Architects, Town Planners, and Surveyors
- Construction Project Managers
- Quantity Surveyors
- Architectural Technologist
- Architect
Business, management, and economics
- Taxation experts
- Tax consultants
- Qualified accountants
- Actuaries Statisticians Economists
- Chartered and certified accountants
- Business and financial project management professionals
Natural and Social Science Professionals
- Biochemists
- Medical laboratory scientists
- Chemical scientists
- Biological scientists
- Physical scientists
Quality and Regulatory Professionals
- Quality control and planning engineers
- Quality assurance and regulatory professionals
- Environmental health professionals
Media Professionals
- Art Director in 2D or 3D animation
Design Occupations Location Designer
- Animation Layout Artist
- Character Designer in 2D or 3D animation
- Prop Designer in 2D or 3D animation
Sports and fitness
- High-performance coaches
Sales, marketing, and related associate professionals
- Business sales executives
Both critical and scarce skills in South Africa are equally demanding of highly experienced professionals. Therefore, it is essential to consider our list of scarce skills in South Africa when deciding on a career to ensure that you boost your career opportunities in the competitive and highly diverse labor market.
Skills Development Act
The purpose of the Act
The low supply of skilled workers is a major barrier to the competitiveness of South Africa. The Skills Development Act aims to increase the awareness and skills of the workforce to boost employment and productivity.
The main goals of the Act are:
• Improving efficiency in the workplace and the competitiveness of employers
• Enhancing the delivery of services
• Enhancing the quality of life of employees, their employment opportunities, and the mobility of workers
Actively promote self-employment
• Raise the amount of expenditure in education and training in the labor market and boost the return on that investment
Main problems and obligations of the Act
The goals of the Act are to be accomplished by creating an institutional and financial structure, including the Sector Education and Training Authority (SETAs), the National Skills Fund (NSF), the National Skills Authority (NSA), and the Department of Labor institutions.
The National Skills Authority was established by the Act on 12 April 1999. The NSA’s task is to advise the Labor Minister on national skills development policy and strategy and guidance for the implementation of the National Skills Development Strategy. It also advises the Minister on the distribution of grants from the NSF. It reports to the Minister on the developments made in implementing the strategy. The NSA must carry out inquiries on any matter arising out of the implementation of the Act.
The makeup of the NSA is as follows:
• Chairperson;
• Executive Officer:
• Organized labor (Cosatu, Fedusa, and Nactu)
• Organized business (Nafcoc and BSA)
• The Community; (Youth, Rural and Civic Women People with disabilities,)
• Government departments (Education, Labour, DTI DPSA, and DACST)
• Representatives from education and training providers (further education, higher education, adult basic education and training, and private)
The Ministry of Labor is required by the Act to create and, where appropriate, assist SETA for any national economic sector. Within the National Skills Development Strategy framework, SETA must create and incorporate a sectoral skills development plan through skills development grants. It must promote learnerships by recognizing workplaces for real work experience. SETAs have the role of monitoring the quality of education and training in their sectors. They need to liaise with the NSA, the Employment Services, and the provinces. SETA also reports to the Director-General of the Department of Labor on executing its sectoral skills plans and its revenue and expenditure. SETAs are funded from the levies raised from its sector, and the monies allocated to it make up the National Skills Fund.
One of the roles of SETA is to create a learnership with a formal learning program and a practical work experience of a specific nature and length. The learnership must give rise to a qualification recognized by the South African Qualifications Authority.
In section 11 of the Act, the composition of the SETA must include:
• Organized labor
• Coordinated employers (including some)
• Professional bodies involved (optional)
• Relevant government departments;
• Representatives from the appropriate negotiation board (optional)
Following Section 22 of the Act, the Director-General of the Department of Labor is obliged to create a Skills Development Planning Unit within the Department and provide it with the personnel and financial resources required to execute its functions. The duties of the unit shall be:
• Study and review of the labor market to assess the skills development needs of South Africa as a whole, of every segment of the economy and the state organs;
• Assist in the design of national skills growth policies and sectoral skills development plans;
• to provide the Minister, the NSA, SETA, education and training providers, and state bodies with information on skills.
The Director-General has the directive to set up work centers in the Department. The Labor Centers’ task is to provide job services to employees, employers, training providers, and rural communities. Labor centers are to carry out the following tasks:
• to register vacancies and job opportunities;
• the registration of job-seekers
• Engagement in special education and educational activities
• assist the prescribed groups of individuals –
• launch the incoming generating projects
• to find a job
• Participation in special jobs programs
The Act formed the National Skills Fund to invest in projects listed as priorities in the National Skills Development Strategy or other projects that the Director-General considers necessary to achieve the Act’s objectives. The Skills Development Levies Act of 1999 accounts for the collection, management, disbursement, and regulation of revenues in the Fund.
Lastly, the Act makes provisions for the public service employer in the provincial and national government domains to allocate at least one percent of its payroll for its workers’ education and training with effect from 1 April 2000 and, where applicable, to contribute funds to SETA.
Skills Development Policy South Africa
Acquiring unique skills at this time and age is important to help a person find a career path but is crucial in distinguishing them from the crowd, with far too many unemployed individuals in South Africa and so few jobs left. Individuals must be qualified enough for employers to need them more.
This is a much-needed policy in South Africa and should be well-used by businesses and companies.
How can your business or company benefit from the Skills Development Act?
Well, it is advantageous both to you as an employer and to your employees. It helps both you and the company as you will have better-trained workers that can function more productively – this allows quicker turnaround times and fewer errors, resulting in better output for the company.
Employees who are well educated will feel more positive in their jobs and be more proud of how they do their job because they will feel respected for investing in them. These workers will have a higher degree of job satisfaction and will love and enjoy being at work knowing they are respected.
In general, it’s perfect for everyone in the business.
How to claim back with the skills development act?
If your company or organization has a wage bill of more than R500k per year, you are expected to pay a Skills Development Levy of 1percent of that payroll to the policy. Thankfully, there’s hope—you can claim back up to 50 percent of that figure; there’s just a few simple steps you need to take.
• Firstly, register with your specific Sector Education and Training Authority (SETA).
• Consider what kind of training will better help the organization and your workers (think about factors such as business growth plans, BEE scorecards, succession planning, training programs, management grooming, employee’s skill needs, and career development).
• Organize a training schedule for the year and how you expect it to be carried out.
• Compile and send in a Workplace Skills Plan to SETA ( a template can be found on their website and submitted online). The SETA training calendar runs from 1 April of each year until 31 March of the following year – the Job Skills Plans must be submitted by 30 June of each year.
Each year, the company is expected to send in one of these Workplace Skills Plans with a comprehensive training outline for the subsequent year and an annual training report documenting the training conducted in the past year.
As long as you’re meticulous in implementing all of the above, you won’t have a problem claiming back the Skills Development Levy.
Note that uplifting and developing your staff is as crucial as paying their salaries. If your staff doesn’t feel like they’re respected or rising, they may move on to somewhere better, where they won’t be abused and motivated to improve. Staff is the lifeblood of your business, so they should be treated with respect. If you have a competent staff, there is even more reason to care for them and value them as much you can.
Skills Development Training Courses
Various institutions in South Africa offer Skill development training courses and programs. Some of them are:
Guarantee Trust Corporate Support Services
This project entails growing the job-readiness program for young people in the micro-finance and banking skills sector operated by BANKSETA, emphasizing the challenges of hiring youths in the finance sector. The program also goes beyond building workplace and communication skills and technical skills among youth participants.
Manpower
Manpower has championed a range of first moves, including the launch of an industry-first online training platform, the Training and Development Centre. This offers free instruction to employees of Manpower and also to all employees of Manpower.
Unilever
At Unilever, they believe in investing in the future and cultivating tomorrow’s industry leaders – you. Suppose you are a university graduate looking for on-the-job experience through their Management Trainee Program or a college student looking for a hands-on internship. In that case, they have what you’re looking for.
Mercedes-Benz SA
The training program consists of an approved Merseta program, which seeks to improve the technological skills and manufacturing skills needed to meet adequately trained employees’ increased demands. This supply of skilled staff would then be retained within the automobile manufacturer to create Mercedes Benz C’s next generation.
Fetola’s
Fetola hires unemployed graduates and evaluates them to align graduates with internship opportunities. They are then placed in an involved institution for an internship. Via this internship, graduates get work experience and build relationships with employers, all of which are designed to enhance employability and retention.
Fluor
Fluor has been offering instruction on skills growth to local South Africans for almost 35 years. Fluor started on-site training at the Sasol II and Sasol III project facilities and continues to train indigenous South Africans in skills that will serve them in potential job opportunities.
Coega Development Program
The Coega Strategic Skills Development Program will offer training in manufacturing skills to 800 unemployed Eastern Cape youth. It will provide additional 150 Northern Cape youth with the opportunity to undergo apprenticeship training. Skilled young people will then be put in the Kalagadi and FAW jobs on a sustainable basis.