Employers in South Africa who invest in staff development can benefit financially by accessing grants from their relevant Sector Education and Training Authority (SETA). Whether you’re training new recruits or upskilling your current workforce, understanding how to claim SETA money can help reduce training costs and improve your return on investment.
This step-by-step guide will walk you through the process of claiming a SETA grant for employers, including eligibility criteria, documentation requirements, and important deadlines.
What Is a SETA Grant for Employers?
A SETA grant for employers is a financial incentive provided to businesses that are actively involved in training and developing their workforce. These grants are funded through the Skills Development Levy (SDL) paid to the South African Revenue Service (SARS). The grants come in two main forms:
- Mandatory Grants – a 20% reimbursement of your annual SDL contribution
- Discretionary Grants – additional funding for specific training programmes such as learnerships, internships, and skills programmes
By claiming these grants, employers can recover a portion of their training investment and contribute to national skills development priorities.
Step 1: Register with the Relevant SETA
Every business in South Africa falls under a SETA based on its core industry. For example:
- W&RSETA – Wholesale and Retail
- MerSETA – Manufacturing and Engineering
- HWSETA – Health and Welfare
- CETA – Construction
- ETDP SETA – Education and Training
If you are not already registered with your industry-specific SETA, you must do so before claiming any grant.
Step 2: Ensure You’re Paying the Skills Development Levy (SDL)
Only employers with an annual payroll of R500,000 or more are required to pay the SDL. This levy equals 1% of your total monthly payroll, including salaries, bonuses, overtime, and benefits.
To qualify for grants, you must:
- Be registered with SARS for SDL
- Be compliant in all SDL payments
- Submit monthly returns via EMP201
Step 3: Appoint a Skills Development Facilitator (SDF)
An SDF is a person designated to manage the company’s skills development activities and interact with the SETA. They are responsible for preparing and submitting the following:
- Workplace Skills Plan (WSP)
- Annual Training Report (ATR)
- Grant application documents
You may appoint an internal HR team member or an external consultant as your SDF.
Step 4: Submit Your Workplace Skills Plan (WSP) and Annual Training Report (ATR)
To claim your mandatory grant, you must submit your WSP and ATR to your SETA by 30 April each year.
- WSP outlines planned training for the coming year
- ATR reports on the training conducted in the previous year
These documents must be accurate, aligned to your SETA’s Sector Skills Plan, and signed off by a registered SDF and an authorised company representative.
Step 5: Apply for a Discretionary Grant (Optional but Recommended)
If you plan to run structured training such as learnerships, internships, or artisan development programmes, you may also qualify for discretionary grants.
To apply:
- Monitor your SETA’s website for open Discretionary Grant Windows
- Download the application guidelines and forms
- Submit a proposal aligned to your sector’s scarce and critical skills
- Include required supporting documents (e.g., company registration, tax clearance, accreditation)
These grants cover training costs, stipends, and sometimes even administrative support.
Step 6: Track Submission and Feedback
Once your grant submissions are in:
- Track confirmation of receipt via your SETA’s online portal or email
- Respond to queries or clarification requests from your SETA promptly
- Save copies of all submitted documents and correspondence
SETAs typically take several weeks to evaluate and process grant applications. Approved employers will receive a Grant Award Letter or Service Level Agreement (SLA) to sign.
Step 7: Sign the Service Level Agreement (SLA)
Before any payment is made, you must sign the SLA, which outlines:
- Approved funding amounts
- Milestones and deliverables
- Payment schedules
- Reporting obligations
Failure to deliver on your SLA obligations can result in withheld payments or penalties.
Step 8: Submit Evidence of Training Implementation
To claim how to claim SETA money, especially discretionary grants, you’ll need to:
- Submit training records (e.g. attendance registers, assessments)
- Provide proof of learner enrollment and completion
- Comply with monitoring and reporting requirements
- Participate in SETA audits or site visits
Your SETA will disburse grant payments in tranches based on progress reports and milestones.
Step 9: Receive and Use Your SETA Grant
Once your documentation is verified, you’ll receive grant payments directly into your business account. You can use these funds to:
- Offset training provider costs
- Cover learner stipends
- Improve training infrastructure
- Expand employee development programmes
Proper management of grant funds ensures long-term success in future applications.
Tips for Maximising Your SETA Grant Success
- Plan early: Don’t wait until the deadline to gather documents or complete forms
- Stay compliant: Ensure SDL is paid monthly and SARS is up to date
- Align training with national skills priorities
- Build partnerships: Collaborate with accredited training providers or other employers
- Keep records: Store all documentation securely for auditing purposes
Common Mistakes to Avoid
- Late submission of WSP and ATR
- Submitting outdated or incomplete documents
- Not appointing a registered SDF
- Missing funding windows for discretionary grants
- Failing to meet deliverables outlined in the SLA
By avoiding these mistakes, your business can benefit consistently from the SETA grant for employers each year.
Conclusion
Claiming a SETA grant for employers in South Africa is one of the most effective ways to recover your investment in skills development. With a clear understanding of how to claim SETA money, businesses can support staff growth, contribute to national skills targets, and improve BBBEE compliance.
Start early, stay informed, and follow the correct procedures. With consistent participation, your business can become a leader in workforce development and unlock long-term value through SETA grants.