The intention of grant regulations is for mandatory grants to be used for skills development, hence it is an incentive for employers to plan and implement training for their employees and create training opportunities for employed and unemployed people.
Companies that exceed an annual payroll of R500 000 are liable to pay 1% skills levies to SARS. Hence, companies registered for SDL, have an option to submit a Mandatory Grant application to their respective SETA.
Criteria for Mandatory Grants
The employer should be registered with the merSETA and their levy contribution should be with SETA 17. Employers are encouraged to engage with SARS if they are unsure of the SETA they should pay levies to.
Employers need to ensure that their SDF is registered on the NSDMS system, and that the respective company is linked to the SDF profile.
Bank details need to be submitted and approved for the system to initiate the mandatory grant application.
A Workplace Skills Plan (WSP) and Annual Training Report (ATR) need to be submitted between the period 01 February to 30 April and signed off by the nominated SDF.
Companies with 50+ staff members, or with a recognition agreement (i.e., the majority, 50%+1, belongs to the union), would need to ensure that they have a training committee in place and a nominated employee/labour SDF to co-sign the mandatory grant submission, and this representative should form part of the training committee. Two (2) sets of minutes are required, leading up to the submission.
Mandatory Grant Disbursements
For a company to receive payment, the following is required:
- An approved MG submission;
- Levies are paid and up to date with SARS; and
- Bank details are captured and approved.
Mandatory Grant Queries
Companies can contact the merSETA Call Centre on 0861 637738, Quality Admin at Admin@merseta.org.za, their respective regional office or Client Liaison Officer (CLO).