By: Siyaya Skills  11-11-2011
Keywords: employment, Skills Development, Employment Equity Act

Skills Development Services

With Siyaya's involvement, we add value by:

  • accessing funding for our clients from respective Seta’s
  • assisting companies to benefit from financial incentives such as SARS’s and Section 12H allowance
  • aligning training objectives to optimize the organization’s B-BBEE rating
  • addressing any skills shortages

Once appointed as a company’s SDF, Siyaya Skills Institute ASSISTS OUR CLIENTS IN QUALIFYING FOR GRANT PAYMENTS by doing the following:

  • Determining job profiles and categories of employees
  • Conducting a skills audit and highlighting skills gaps
  • Researching and aligning training requirements of positions with registered Unit Standards and qualifications
  • Completing Workplace Skills Plan (WSP): integrating financial, strategic and individual requirements through an elected training committee
  • Submitting a Workplace Skills Plan (WSP) to relevant SETA
  • Researching and determining training budget and funding opportunities
  • Implementing planned activities through accredited training providers
  • Submitting an Annual Training Report (ATR), reporting progress and claiming applicable training grants

Skills Development Levies Act

What is Skills Development Levy (SDL)?

The Skills Development Levies Act, 1999, has been instituted to develop the skills - through training and education - of the South African workforce. This is achieved by employers paying a 1% levy of their total wage bill, payable to SARS.

Who submits?
  • All companies / organizations that have a wage bill (inclusive directors drawings) in excess of R500 000 per annum ( R42 300 per month).

Where does the money go?
The money goes to Sector Education and Training Authorities (SETA's) and the Skills Development Fund to pay for training.

Why pay?

The 1% tax is compulsory – use it or loose it.

(It is not another tax, rather a strategic bank account)

How can we get these benefits?
A company will have to:

  • invest in the skills of their employees
  • submit the correct documentation on an annual basis

With Siyaya's involvement we:

  • access funding for our clients from respective SETA's
  • assist companies to benefit from financial incentives (SARS & Section 12H)
  • optimize companies B-BBEE rating by aligning training objectives
  • address skills shortages

Skills Development Levy Indicator - "Do I need to pay SDL's?"

Employers who do not pay will have to pay interest on the money they already owe and may also pay a penalty.

Employment Equity Act:

According to the SA Department of Labour, employers who employ more than 50 employees or have a total annual turnover that is equal and above the applicable annual turnover of a small business (view table) - must prepare, and implement, an employment equity plan. This plan, valid for 1 to 5 years, should achieve progress towards redressing disparities in employment.


To promote the constitutional right of equality and eliminate unfair discrimination in employment.


AN EEP must state the:

  • objectives to be achieved for each year of the plan
  • affirmative action measures to be taken
  • numerical goal to achieve equal representation of underrepresented groups
  • timetable for each year of the plan
  • duration of the plan (not longer than 5 or shorter than 1)
  • procedures used to monitor and evaluate the plan
  • internal procedures to resolve any dispute about implementation of plan
  • persons responsible for monitoring plan

The EE Report must be submitted to the Department of Labour on 1 October annually in the case of a company employing 150 or more employees and once in 2 years for a company employing less than 150 employees.

Calculate your Employment Equity Plan - "Do I need to submit?"

Sectors in accordance with Standard Industrial Classification

Annual turnover



Mining & Quarrying




Electricity, Gas & Water




Retail & Motor Trade & Repair Services


Wholesale trade, commercial agents and allied services


Catering, Accommodation


Transport, Storage and Communications


Finance & Business Services


Community, Special and Personal Services



If a company has been found guilty of contravening the Employment Equity Act (No. 55 Of 1998), maximum fines imposed will be from R500 000 for a first offender and up to R900 000 for a multiple offender.

Visit to view the Employment Equity Act.

Keywords: employment, Employment Equity Act, Skills Development