Page 8 - Business Studies Grade 12
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1.9 The penalties.
Failure to pay the Skills Development Levy is an offence and the business
will pay the required amount plus interest.
The sentence might be a prison term, fine or both.
1.10 The Skills Development Levy.
All employers with a wage bill of R500 000 per annum must pay the levy.
The levy is 1% of the wage bill and is paid to SARS.
The National Skills Fund receives 20% of the levy whilst 10% is used for
the organisational expenses of the SETA to which the business is affiliated.
The business is entitled to receive grants back from the SETA if it produces
a Workplace Skills Plan and implementation reports.
The calculation of the skills development levy is as follows:
Step 1: Add all the employees’ salaries.
Step 2: Calculate 1% of the total salaries.
1.11 Sector Education Training Authorities (SETAs).
SETAs are responsible for implementing learnerships and other skills plans
which the sector has indicated as priorities.
SETAs organise education and training programmes in their sectors.
Each SETA develops its Sector Skills Plan (SSP).
Each sector skills plan identifies a skill that is in short supply and is most
needed and then develops strategies to ensure education and training
programmes are in place to meet those needs.
The functions of the SETAs are to:
Develop and implement a sector skills plan within the framework of the
National Skills Development Strategy.
Promote and register learnership agreements.
Apply for accreditation from the South African Qualifications Authority
(SAQA).
Support struggling sectors’ access funds.
Supply required skills for public investment programmes.
Pay out grants to companies in line with workplace skills plans and
implementation reports.
Represent all economic sectors.
Identify workplaces where learners can do practical work.
Support organisations and people who create learning materials.
Help develop and register the learnership agreements.
Every organisation appoints a Skills Development Facilitator (SDF) to
oversee the skills development process. This SDF should undergo training
with the SETA and is to be formally accredited as an SDF.
Examples of SETAs:
AGRISETA – the Agricultural Sector Education and Training Authority.
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