Download Understanding the new 2013 Seta Grant

Imsimbi Breakfast Seminar
7th November 2013
Understanding the New
Grant Regulations
T R A I N I N G
7th November 2013
unleashing your
potential
Focus on the New Regulations
 Emphasis of the Minister is now on the
delivery of quality training to achieve a
skilled workforce
 Shift in Levies from Quality to Quality
 Inadvertently consequences
 fail to address the needs of industry and
commerce; and
 The skills needs of individuals.
7th November 2013
T R A I N I N G
Significant Changes
 Regulate the portion of levies which
SETA’s can use for administration
 Reduce the mandatory grants from 50%
to 20% of levy.
 Increased Discretionary Grants from
20% to 50% of levy
 Maximum Surplus Funds of 5%
7th November 2013
T R A I N I N G
Significant Changes
 Increased requirement for information
contained in the Workplace Skills Plan
 Sign-off by labour representatives
 Create a framework within which
expanded use is made of public
education and training providers for the
provision of skills development
programmes
7th November 2013
T R A I N I N G
The Need for a Grants Policy
The purpose of the regulations:
 Develop specific policies and procedures
 Firstly, they provide a mandate
 Secondly, act in a transparent and fair
manner
 Thirdly, how the SETA will allocate
resources
7th November 2013
T R A I N I N G
Understanding Mandatory and Discretionary
Grants including Pivotal Grants
Mandatory Grants:
 provide data to their relevant SETA
 Geared towards
 Critical Skills
 Important Skills
Discretionary Grants:
 Implementation of Sector Skills Plan
 No employer entitlement
7th November 2013
T R A I N I N G
Pivotal Programmes and Discretionary Grants
 Pivotal programmes are derived from
the SETA’s Sector Skills Plan
 Priority occupations where supply
challenges exist.
 Critical skills required in the sector
7th November 2013
T R A I N I N G
Crafting a SETA Policy
 SETA grant policies must align themselves to
not only the grant regulations but must as
their objective ensure that both mandatory
and discretionary grant applications are
evaluated and approved in compliance with
their policy in relation to:
 The Skills Development Act No. 97 of 1998
 The Skills Development Levies Act of 1999 and
their regulations.
7th November 2013
T R A I N I N G
Key aspects of the merSETA policy
Mandatory Grants:
 Eligibility
 Values
 Deviations
 Payments
7th November 2013
T R A I N I N G
Key aspects of the merSETA policy
Discretionary Grants:
 Administration
 Eligibility
 Important considerations
7th November 2013
T R A I N I N G
Allocation of Levies
Discretionary Grants:
 49.5% of total levies paid by the employer
 At least 80% allocated to pivotal programmes
 A maximum of 20% allocated to non pivotal
programmes
 Surplus funds, unclaimed mandatory grants,
and interest and penalties to be transferred to
discretionary funding
7th November 2013
T R A I N I N G
Pivotal Programmes
Programmes identified by the merSETA
 Apprenticeships
 Learnerships
 Skills Programmes leading to a qualification
 Work integrated learning
 Workplace experience
 Bursaries
 R.P.L.
 Public FET Graduates
 Graduate Development (U.o.T and University
Graduates)
7th November 2013
T R A I N I N G
Grant Allocation – Pivotal Programmes
The allocation of 80% pivotal programmes
will be split:
 70% to those companies submitting a WSP /
ATR
 30% to those non levy paying companies and
other entities.
 Where an organisation is spending more than
3% of their payroll on training the merSETA
would consider allocating additional funding
(beyond 49.5% Maximum)
7th November 2013
T R A I N I N G
Grant Allocation
10.5%
Administration
?% Surplus
merSETA
80%
Grants 69.5%
20%
Mandatory
100% S.D.L.
49.5%
Pivotal
N.S.F. 20%
7.5% Projects
Admin
7th November 2013
T R A I N I N G
Pivotal programmes
 Apprenticeships
 Learnerships
 Skills Programmes leading to a qualification
 Work integrated learning
 Workplace experience
 Bursaries
 R.P.L.
 Public FET Graduates
 Graduate Development (U.o.T and University
Graduates)
7th November 2013
T R A I N I N G
Allocation of Pivotal
The allocation of 80% pivotal programmes:
 70% to those companies submitting a WSP /
ATR
 30% to those non levy paying companies and
other entities.
 Where an organisation is spending more than
3% of their payroll on training the merSETA
would consider allocating additional funding
(beyond 49.5% Maximum)
7th November 2013
T R A I N I N G
Maximising Grants Recoveries
Pivotal Programmes
(80% of available discretionary grants)
Value
Artisan Development:
NQF 2 – 4 ending in a trade test
R121,500.00 payable in tranches per learner NQF level
2 – 4 ending in a trade test and apprentices
Learnerships
R14,040.00 per learner per level. Plus additional learner
allowance
NQF L1 = R12,960.00 per annum (with progression )
NQFL2 = R19,440.00 per annum
NQF L3 = R 25,920.00 per annum
NQFL4 = R32,400.00 per annum
Apprenticeships
Subject to criteria from the NAMB being approved
R121,500.00 payable in tranches
Recognition of prior learning (RPL)
A maximum of R16,200.00 per candidate for RPL
assessment process
A maximum of R13,500.00 for GAP training based on
submission of GAP training plan and outstanding unit
standards.
Skills Programmes
R 226.80 per credit per learner
7th November 2013
T R A I N I N G
Maximising Grants Recoveries
Work-integrated learning (WIL) and internships
Workplace Experience
Basic Grant to company for learner
allowance
R29,700.00 per learner for six a month
period.
Public FETC graduates
FETC Candidates: Nated Certificate
(NTC 1 to 3) : R19,394.64
Graduate Development (UoT
and University graduates)
Basic Grant to company:
R64,800.00 per annum per learner
7th November 2013
T R A I N I N G
Category of Employer
 Established
 60% of the total funds will be allocated
 Developmental
 30% of the total funds will be allocated
 New Business Category
 10% of the total funds will be allocated
7th November 2013
T R A I N I N G
Discretionary Grant Deliverables and Payments
 First Tranche: 10% of the MoA value
 Second Tranche: 30% of the value for
individual learning intervention as per
Annexure A of the MoA
 Third Tranche: 30% of the value of the
individual learning intervention as per
Annexure A of the MoA
 Fourth Tranche: 30% of the value of the
individual learning intervention as per
Annexure A of the MoA
7th November 2013
T R A I N I N G
Non Pivotal Programmes
 identify special projects with special rules
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7th November 2013
Lecturer development
Small and Micro enterprise development
Rural development programmes
Stakeholder support and capacity building
Co-operatives, CBOs, NGOs and CBCs
People with disabilities
Green Skills Development and alignment
Foundational Learning Competence
HIV & AIDS accredited Peer Educator
Programme funding
T R A I N I N G
The Future: Moving Forward With the New Grant Regulation
 Public training institutions will not be able to address all
the skills needed for workplace performance.
 Public institutions do not have the expertise needed to
cover the wide range of specialised skills that are needed
by stakeholders.
 Make provision for funding programmes delivered by
reputable private providers that have the necessary
expertise in specialised fields. There are sufficient quality
assurance mechanisms in place to identify sub standard
private providers.
 The Regulations may reduce employer participation in
skills development even more so with the new BBB EE
codes requiring 6% spend on training and the placement
of learners post training with a further split between those
on apprenticeships and learnerships.
7th November 2013
T R A I N I N G
The Future: Moving Forward With the New Grant Regulation
 The reduction in the mandatory grant will
substantially reduce the incentive of small
and even medium-sized employers to submit
Workplace Skills Plans
 Most skills employers require for workplace
performance are not developed through
discretionary grant programmes.
 Engage your SETA
 Understand their grant policies and what
discretionary grant have been identified
7th November 2013
T R A I N I N G
Added Influences
 Medium Term Expenditure Framework
 Minister of Finance applies expenditure
ceilings
 FET Infrastructure Development
 DHET issues communication regarding
compulsory FET infrastructure support
from 21 SETA’s (R1 billion) preferably
once of payment before 30th April 2014
7th November 2013
T R A I N I N G
Added Influences
 National Student Financial Aid Scheme
 Shortfall of R2.6 billion
 SETA’s requested to allocate funding for
those students studying in their sector
 R60,000 per student / R20m in current
year
7th November 2013
T R A I N I N G
Imsimbi Breakfast Seminar
7th November 2013
Thank You
Questions ?
T R A I N I N G
7th November 2013
unleashing your
potential