Mandatory Grants

Access to Mandatory Grant Funding

The mandatory grant is paid directly to the employer and is 20% of their 1% of the skills development levy contributed to a given financial year by a levy-paying employer registered with the SETA and which must be paid to an employer on condition that the qualifying criteria as set out in this policy are met.

Step 1

Register Organisation with South African Revenue Services

Step 2

Skills Development Levy (SDL) Number Issued

Step 3

Pay 1% of total remuneration paid to employees to SARS

Step 4

Submission to WSP by the 30th April

Step 5

Approval of WSP by HWSETA

Step 6

Payment of quarterly mandatory grant as per the SETA Grant Regulations and The Skills Development Levies Act.

Contact SETA to register Skills Development Facilitator (SDF)
  • An SDF is an employer resource and can be an employee or a contracted
  • The core responsibility of an SDF is to facilitate the WSP and ATR, and the
    submission of these documents by 30 April each year;
  • An SDF monitors payments to SARS, as well as payments received from the SETA.
Submit WSP and ATR by 30 April each year. It is important to note the following:
  • The organisation submitting the WSP/ATR needs to be up to date with SDL payments to SARS.

Pay 1% of total remuneration paid to employees to SARS
80% is paid to the relevant SETA and divided as follows:
  • 49.5 is for Discretionary Grant Funding;
  • 20% is for Mandatory Grant Funding;
  • 10% is for administration;
  • 0.5% QCTO;
  • Any unclaimed mandatory grant funding will be transferred to discretionary grant funding by 15 August each year.
20% is paid to National Skills Fund:
  • To fund projects identified in the National Skills Development Strategy as national priorities;
  • To fund projects related to the achievement of the purpose of the ACT as the Director-General of the Department of Higher Education and Training determines;
  • To administer the fund within the prescribed limit as regulated from time to time.