Training

Skills Levies in a Climate of Skills Crisis

Employers who pay PAYE are obliged by National Legislation to contribute 1% of their wage bill to the Skills Levy Fund. The Mandatory Claims provision of this fund enables employers to claim back 70% of this amount on educating/training current employees. Since most employers are not claiming this amount the funds become available for payment under the Discretionary Grant provision. This means that the Discretionary Funds become available to competitors who are investing in the knowledge and skills development of employees. Those companies who are not training are weakening in a very competitive market, especially in these very difficult economic times.

If Skills Development Facilitators submit Workplace Skills Plans that include accredited courses from accredited providers, companies can properly reclaim on their skills levies paid, and position themselves for a strong competitive advantage when the economy “turns”.  If training budgets have been cut, then this is the time to make full use of the Skills Development Fund. This is the magic moment, as the economy “turns”, to begin to train staff and secure a strong position for your company, ensuring improved employee relationships and staff who are able to align their personal goals with that of the company, whilst meeting equity and skills training targets. In the words of Dr Nzimande, workplaces need to become “training spaces”. The time is now.