New SETA Regulations. Siyakha Consulting By Candice Popplestone

Transcription

1 New SETA Regulations Siyakha Consulting By Candice Popplestone

2 Overview Revised SETA Grant Regulations Intent of Grant Regulations Distribution of Skills Levies SETA (Sector Education and Training Authority) Discretionary Grants PIVOTAL Programmes Mandatory Grants New Template Practical Application Additional Considerations Skills Development within the context of B-BBEE Return On Investment

3 Revised SETA Grant Regulations The Minister of Higher Education and Training has approved and published the SETA Grant Regulations in Government Gazette No of 3 December 2012 for the necessary implementation with effect from 1 April 2013 by the Sector Education and Training Authorities (SETAs). The new regulations are in line with the National Skills Development Strategy (NSDS3) and the proposed changes to the BEE Codes.

4 Intent of Grant Regulations Regulate spend of funds on administration; Allocation for Quality Council for Trade and Occupations (QCTO); Discourage the accumulation of surpluses and the carry-over of unspent funds at the end of each financial year; Improve the quantity and quality of labour market information; Promote National Qualifications Framework (NQF) registered and quality assured PIVOTAL programmes that address priority scarce and critical skills; and Promote use of public education and training providers for the provision of skills development programmes.

5 SETA (Sector Education and Training Authority) A SETA may determine and allocate discretionary grants in support of the implementation of its Sector Skills Plan (SSP) Specify how the SETA discretionary funds will be allocated to meet sector needs as set out in the SSP Outline delivery models, project types and mechanisms for SETA member organisations to access the discretionary grants Address scarce and critical skills through programmes that are designed to address such skills needs, and which include work integrated learning Allocate at least 80% of discretionary grant funding to PIVOTAL programmes Allocate a maximum of 20% to funding of programmes, other than PIVOTAL programmes

6 Distribution of Skills Levies Previous Distribution of Skills Levies New Distribution of Skills Levies as of 1 April 2013

7 Discretionary Grants The amount in the discretionary fund on 1 April each year must be spent or committed in the ensuing twelve months 80% of discretionary grants must be allocated to PIVOTAL programmes that address scarce and critical skills in the sectors At the end of each financial year a SETA must have spent or committed at least 95% of discretionary funds available to it by the 31 March of each year A maximum of 5% of uncommitted funds may be carried over to the next financial year The remaining surplus of discretionary funds must be paid by the SETA by 1 October of each year into the National Skills Fund (NSF)

8 Pivotal Programmes PIVOTAL Programmes: professional, vocational, technical and academic learning programmes that result in qualifications or part qualifications registered on the National Qualifications Framework (NQF) that address critical and scarce skills needs. Professional learning programmes lead to designations that are registered by professional bodies Vocational learning programmes lead to a trade and/or the National Certificate Vocational (NCV) Technical learning programmes occupationallydirected and registered by the SETA; such programmes include apprenticeships, learnerships and skills programmes Academic learning programmes lead to academic qualifications such as certificates, Higher Certificates, Diplomas and Degrees

9 Mandatory Grants With effect from 1 April 2014 WSP/ATR/PTR must be submitted by 30 April of each year 20% of the total levies paid by the employer will be paid to the employer who submits a WSP and ATR If the employer does not claim a mandatory grant within the time period specified, the employer s unclaimed mandatory grant is transferred to the discretionary fund by 15 August of each year

10 New Template A1: Entity Name A2: Skills Development Levy Number (SDL) SECTION A: ADMINISTRATIVE DETAILS ENTITY DETAILS A3: Postal Address of the Main Office City Province Postal Code A4: Standard Industrial Code (SIC Code) for the main business activity DETAILS OF THE PERSON WHO COMPLETED THE FORM A5: Title A6:Surname A7: First Name A8: ID Number A9: Telephone Number A10: A11: Name of Bank A12: Account Number A13: Name of account Holder A14: Type of Account A15: Branch Name A16: Branch Code BANKING DETAILS

11 New Template SECTION B: EMPLOYMENT SUMMARY B1: Total number of employees per occupational category, by gender, population group, disability status and age group Occupations Male Female Total People with Disability Age Groups Geograp OFO Code Occupational Category hy A C I W A C I W A C I W < >55 Local Municipa lity B2: Total number of employees in each province

12 New Template SECTION C: SKILLS DEVELOPMENT C1: Total number of employees per occupational category, by gender, population group, disability status and age group Occupations Male Female Total People with Disability Age Groups Geography OFO Code Occupational Category A C I W A C I W A C I W < >55 Local Municipality C2: Planned training - unemployed OFO Code Occupational Category Number to be trained at Entry Level Intermediate Level Advanced Level C3: Planned training - employed OFO Code Occupational Category Number to be trained at Entry Level Intermediate Level Advanced Level C4: Planned AET Training AET Total numbers to be trained

13 New Template SECTION D: ANNUAL TRAINING REPORT (Report on training interventions) D1: Number of actual beneficiaries of training per occupational category, by gender, population group and disability status. Occupations Male Female Total People with OFO Code Occupational Category Age Groups Geography Disability A C I W A C I W A C I W < >55 Local Municipality D2: Number of beneficiaries who completed the training interventions OFO Code Occupational Category Educational Institute Number to be trained at Entry level Intermediate Level Advanced Level D3: Total number of beneficiaries who completed AET programmes AET Training AET Total number of employees D4: Impact Assessment Has production increased? Prove how the profit and production of the company was affected by training as planned /completed in the WSP/ATR and PIVOTAL Reports Total number of employees

14 New Template SECTION E : PLANNED PIVOTAL TRAINING umber of planned beneficiaries of training per occupational category, by gender, population group and disability. Occupations Male Female Total People with Disability NQF PIVOTAL level Programme Occupational Category Age Groups Geography Start date A C I W A C I W A C I W < >55 Local Municipality End date umber of verified beneficiaries of training per occupational category, by gender, population group and disability. Occupations Male Female Total People with Disability Occupational NQF PIVOTAL Category level Programme Age Groups Geography Start date A C I W A C I W A C I W < >55 Local Municipality End date lanned training unemployed Occupational Category NQF level PIVOTAL Programmes Number to be trained at Start Entry level Intermediate Level Advanced Level date End date lanned training employed ode Occupational Category NQF level PIVOTAL Programme Number to be trained at Start Entry level Intermediate Level Advanced Level date End date

15 Practical Application Training and development of black employees on learnerships, internships or B, C, D Category training is approximately 5% of total employees 3% of payroll should be invested in the training and development of black employees taking into account gender representation 0.3% of payroll should be invested in the training and development of people with disabilities taking into account gender representation 80% of training should be geared towards PIVOTAL programmes 20% of training is geared towards specific skills training Training Planning (WSP/ATR/PTR) Funded Learning Programmes Unfunded Learning Programmes

16 Practical Application Grants requirements and timeframes Tax Rebates requirements and timeframes 18.1 Learners (Employed) 18.2 Learners (Unemployed) People with Disabilities SDF s, Mentors, Facilitators, Assessors and Moderators Required documentation: Agreements and Contracts Payslips ID Copies Certificates CV s

17 Additional considerations Tax rebates and grants can be applied for and are higher for unemployed learners and people with disabilities There is also additional funding available through certain SETA s for reasonable accommodation expenditure Bursaries can be applied for in partnership with higher learning institutions and the SETA Companies that are exempt from paying SDL and have not submitted WSP and ATR can still access grants Companies can earn points on their BEE Scorecards for the Skills Development element

18 Skills Development within the context of B-BBEE SKILLS DEVELOPMENT Measures the extent to which employers develop the competencies of black employees 15 Points Sub-indicator Skills development spend on black employees as % of Leviable Payroll using ARG Skills development spend on black employees with disabilities as % of Leviable Payroll using ARG (Adjusted Recognition of Gender Number of black learners in Category B,C and D training programmes as % of total employees Weighting Points Compliance Target 6 3% 3 0.3% 6 5%

19 Skills Development within the context of B-BBEE Indicator Target Points Skills Development spend on learning programmes for black employees as % of leviable payroll 6% 8 points Skills Development spend on black employees with disabilities 0.3% 4 points Number of black employees on Learnerships, Apprenticeships and Internships as % of all employees 2.5% 4 points Bonus : Learner Absorption - number of people absorbed by industry at end of learnerships 60% 5 points

20 An organisation's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage ~Jack Welch (Chairman and CEO of General Electric between 1981 and During his tenure at GE, the company's value rose 4000%) Candice Popplestone Lead Consultant: Learning & Development Tel: Cell: Fax: