Skills Development In SA
The short supply of skilled staff is a serious obstacle to the competitiveness of industry in South Africa. The Skills Development Act of 1998 aims to:
- Develop skills for the South African workforce;
- Increase investment in education and training, and improve return on investments in those areas;
- Encourage employers to promote skills development by using the workplace as an active learning environment;
- Encourage workers to participate in learnership and other training programmes;
- Improve employment prospects by redressing previous disadvantages through training and education;
- Ensure the quality of education and training in and for the workplace, and
- Assist with the placement of first time work seekers.
The skills development levy, legislated through the Skills Development Levies Act, 1999, serves to fund the skills development initiative in the country.
The intention is to:
Encourage a planned and structured approach to learning; increase employment prospects for work seekers;
Allow fully participating employers to benefit from incentives and to reap the benefits of a better skilled and more productive workforce.
The levy is calculated as 1% of your wage bill, payable monthly. All employers who are registered with the South African Revenue Service (SARS) for PAYE and have an annual payroll in excess of R500 000 must register with SARS to pay for the skills development levy.