WELCOME TO THE SASSETA 2019 ROADSHOW Presented by: Research and Skills Planning Department

1. WELCOME TO THE SASSETA 2019 ROADSHOWPresented by: Research and Skills Planning Department YOUR PARTNER IN SKILLSDEVELOPMENT

2. MANDATORY GRANTS YOUR PARTNER IN SKILLSDEVELOPMENT

3. Purpose of the Mandatory Grant • Qualifying Criteria • Mandatory Grant Payments • Mandatory Grant Payment dates • The Mandatory Grant Process • Update on the SASSETA Mandatory Grants • Inter-seta Transfers • WSP support Content YOUR PARTNER IN SKILLSDEVELOPMENT

4. A grant designated to fund the education and training programmes as contained in the Workplace Skills Plan (WSP) and Annual Training Report (ATR). • Purpose of the grant: • Intended as an incentive to employers to plan and implement training for their employees. • Promote NQF registered qualifications to address scarce and critical skills needs. • Improve the quantity and quality of labour market information received by SETA’s. What is a Mandatory Grant? YOUR PARTNER IN SKILLSDEVELOPMENT

5. SASSETA will pay mandatory grants to an employer who has met the following criteria: • Has registered with the Commissioner of SARS • Has contributed levies directly to Commissioner within the specified time frame • Is up to date with levy payments at the time of approval. • Has submitted WSP/ATR contributing to the SASSETA SSP • Proof or evidence of consultation with organized labor is provided and signed off Mandatory Grants Qualifying Criteria YOUR PARTNER IN SKILLSDEVELOPMENT

6. SASSETA will pay mandatory grants to an employer who has met the following criteria: • Where the employer is newly registered, their first time submission is due within 6 months after registering the company with SARS and CIPRO • The employer should have submitted by the due date i.e. 30 April 2019 • Companies should ensure that they are contributing levies to the correct SETA Mandatory Grants Qualifying Criteria Continued YOUR PARTNER IN SKILLSDEVELOPMENT

7. Employers will only be paid if their respective applications have been approved by SASSETA • The employer will be paid 20% of the total levy paid to SARS as Mandatory Grants. • At least 80% of levies will be allocated to Discretionary Grants for PIVOTAL programmes. • The mandatory grant will be paid quarterly to the employer. • Failure by the employer to claim the mandatory grants within the time period specified in sub-regulation (2), will result in their levies being transferred toward Discretionary Grant funding by 15 August of each year. MANDATORY GRANT PAYMENT YOUR PARTNER IN SKILLSDEVELOPMENT

8. Grant Payment Dates YOUR PARTNER IN SKILLSDEVELOPMENT

9. Mandatory Grants Process YOUR PARTNER IN SKILLSDEVELOPMENT

10. SASSETA received a total of 875 (from LPEs and NLPEs) WSP and ATR submissions for the 2018/2019 financial year • SASSETA has a total of 2766 levy paying entities with only 711 levy paying submissions. This leaves us with a submission rate of only 25.70% • Small number of rejections due to unresolved queries and incomplete forms • The WSP and ATR online template has been simplified and the number of forms required for completion has been reduced Update on Mandatory Grants YOUR PARTNER IN SKILLSDEVELOPMENT

11. The Judgement was handed down by the Labour Court in August 2015 in the litigation brought by BUSA to challenge aspects of the 2012 SETA Grant Regulations. • The Court declared Regulations 3(11) and 4(4) of the 2012 Grant Regulations to be invalid, hence they were set aside. • However, implementation of the court order was suspended until 31 March 2016. • The Minister initially took steps to appeal against the Labour Court judgement and order, but the appeal was not pursued, and it has lapsed. • This means that the Labour Court order can now be enforced. The order has been effective since 1 April 2016. Update on Mandatory Grants continues

12. This implies that: • With effect from 1 April 2016, the mandatory grant that may be claimed reverts to 50% (and not 20%, as provided by the invalid Regulation 4(4) of the 2012 Regulations); and • The sweeping mechanism introduced by the invalid Regulation 3(11) of the 2012 Regulations is no longer in place. • However, this yet to be Gazetted, hence employers will still claim 20% until the policy is in place. Update on Mandatory Grants continues YOUR PARTNER IN SKILLSDEVELOPMENT

13. SASSETA receives applicationsfrom employers requesting to be transferred from other seta’s. Delays due to the processes involved to conclude the inter-seta transfers (depending on the core business of the firm) • Company has to complete IST 01 • Seta to capture information on DHET Levy Portal Systems • Other seta to approve or declined (with reasons) • Company to complete IST 04 to appeal decision • DHET to make a decision upon rejected companies • SARS performs changes • Seta upload information on the monthly basis • Companies are notified of the changes (Inter-seta transfer) Inter-seta Transfers

14. Workplace Skills Plan & Annual Training ReportSupport Should you require assistance with the submission of the WSPand ATR please contact us well in advance of the deadline date of 30 April 2019 • The SASSETA Call Centre 011 087 5555 • Email: callcentre@sasseta.org.za • Mandatory Grant Team at the SASSETA offices: ??????? YOUR PARTNER IN SKILLSDEVELOPMENT

15. QUESTIONS ? YOUR PARTNER IN SKILLSDEVELOPMENT

16. Thank you! Switch board: 011 087 5500 Call Centre: 011 087 5555 Follow us on Facebook www.sasseta.org.za YOUR PARTNER IN SKILLSDEVELOPMENT