The Skills Development Levies
Act (No 9 of 1999) (SDLA) established a compulsory levy scheme for the
purpose of funding education and training as envisaged in the Skills
Development Act (No 97 of 1998) (SDA). The levy became payable with
effect from 1 April 2000. The Department of Higher Education and
Training (DHET) in conjunction with the various Setas, is responsible
for administering the Act, while the South African Revenue Service
(SARS) is responsible for the collection of levies.
All liable organisations
register for the SDL via the EMP101 form (application for registration)
for which SARS issues an EMP103 form (notice of registration) on
successful registration of the employer. If the firm already has an SDL
number and the firm’s payroll is in excess of R500,000 per annum, the
employer is to submit monthly returns via the EMP201 form. SARS issues
an EMP213 as remittance advice. If the firm already has an SDL number
and the firm’s payroll is less than R500,000 per annum, no information
(a nil return) is submitted on the next EMP201 form. With e-filing, SARS
greys out the SDL field. Should the employer become SDL paying
subsequently, they must advise SARS of this (to free up the greyed
The amount payable is calculated
as 1% (one percent) of the total amount of remuneration paid to
employees. Any prescribed exclusions that are not leviable are
subtracted from the total remuneration
Employers can claim 20% of total
levy contributions annually through the submission of an approved
Skills Development Plan (SDP). The SDP is submitted online and is due
by latest 30 April of each year. Fasset uses SDP information to
determine sector skills needs and revises its skills development
strategy accordingly. Accuracy of data is therefore of the utmost
Since no extensions can be granted for submission, employers are urged to collect and collate the required data as soon as possible. It should be noted that an approved SDP is a requirement for participation in any Fasset discretionary grants
Criteria for Acceptance and Payment of the Mandatory Grant
The criteria for the acceptance and payment of the Mandatory Grant by Fasset are as follows:
Employer registered with Fasset.
SDL payments to SARS up to date.
SDP (based on regulated format as published in the Government Gazette) correctly completed and submitted in the format required by Fasset.
Deadline for submission is 30 April, or within 6 months of new employers registering for the SDL.
Authorized signatories have signed where required
Proof of the company’s banking details submitted (i.e. a cancelled cheque, bank statement or letter from the bank) in instances where such details have been changed
A new employer is one that has been operating for less than six months. In this case, we require an EMP 103 form from SARS as proof that the organisation is new. In an organisation were there are no employees we also accept a nil return
Grant payments are made via a
direct EFT into the organisation’s bank account. The reference on the
bank statement is the Skills Development Levy number of the company.
Fasset receives levies 3 to 4 months in arrears and is only able to pay grants if accurate levy information has been received.
Mandatory Grant payments are scheduled as follows: February
For Fasset to pay grants,
current banking details are required. An original stamped letter issued
by the bank, or an original cancelled cheque, is required to process
any changes in banking details.
An IST is the process of transferring a company from one Seta to
The transfer may be done under any of the following circumstances:
The company has been incorrectly registered with a Seta as the main business activity does not match the industrial scope of the Seta
The main business of the enterprise has changed since the previous registration with SARS and now better suits the industrial scope of another Seta
The employer falls within the jurisdiction of more than one Seta, and the employer's application to transfer to the new Seta is motivated by:
the composition of the workforce,
the amount of remuneration paid or payable to the different categories of employees; and
the training needs of the different categories of employees
Should an organisation wish to move from another Seta to Fasset, an IST 01 form must be submitted to the Seta with which the organisation is currently registered. Should a company wish to move out of Fasset to another Seta the IST 01 form must be submitted to Fasset. The Seta must in turn approve the application and forward the signed application to the Department of Higher Education and Training (DHET). DHET then verifies the request and submits the form to the South African Revenue Services (SARS) who will process the change. Please note that this process could be time-consuming. If the application is declined by the relevant Seta, an organisation can dispute this with the Seta in question. If the transfer is still not effected, the matter can be escalated to DHET. Although the Seta facilitates this process, the Seta cannot be held responsible for changes not being made timeously. It is ultimately the responsibility of the organisation to ensure that they are registered with the correct Seta and to monitor the process and ensure the transfer is completed.
Please contact the PQA Department (011) 476-8570 with any enquiries in this regard or consult the Download page for additional information