Mandatory Grant Submissions

Service Description

Mandatory Grant submissions are the annual submission of a Workplace Skills Plan (WSP) and an Annual Training Report (ATR) to a Sector Education and Training Authority (SETA) in South Africa. The purpose is to claim back a portion of the Skills Development Levy (SDL) paid by eligible employers. Who must submit In South Africa, all employers with an annual payroll exceeding R500,000 must pay an SDL of 1% of their payroll to the South African Revenue Service (SARS). These employers are legally obligated to submit the WSP and ATR to their relevant SETA to qualify for a mandatory grant. What the documents contain Workplace Skills Plan (WSP) The WSP is a strategic, forward-looking document that details an organization's plan for addressing its skills development needs for the upcoming financial year. It outlines the specific training initiatives and programs the company will implement to close identified skills gaps. Annual Training Report (ATR) The ATR is a retrospective report on the training activities and outcomes of the previous financial year. It provides details on the training that was actually conducted and measures progress against the goals set in the previous year's WSP. How the mandatory grant works Purpose: The grant is an incentive for employers to plan and execute training for their employees. Funding source: SARS collects the SDLs and distributes a portion to the relevant SETAs. Reimbursement: By submitting a compliant WSP and ATR, employers can claim back 20% of the total SDL they paid for that financial year. The reimbursement is paid quarterly. Forfeiture: If an employer fails to submit a compliant WSP and ATR by the deadline, they forfeit their mandatory grant. Unclaimed funds are transferred to the SETA's discretionary grant fund. Benefits of submitting WSP and ATR Financial gain: Reinvest the 20% mandatory grant back into the business or further skills development. B-BBEE scorecard: Improve your company's Broad-Based Black Economic Empowerment (B-BBEE) score, as skills development is a priority element. Strategic planning: Identify skills gaps within your workforce and implement targeted training initiatives to enhance performance. Tender eligibility: Some government and corporate tenders require proof of compliance, including WSP-ATR submission.