For an employer, SETA registration starts with SARS. You register for the skills development levy (SDL) once you expect to pay more than R500 000 in total salaries over the next 12 months, and you then pay 1% of salaries monthly with your EMP201. The levy funds the SETAs, and you can recover part of it through a mandatory grant. See the SARS skills development levy page.
This page covers the employer obligation. Training providers seek accreditation instead, and learners register on learnerships through employers.
Business Requirements at a Glance
- Register for SDL with SARS if you expect total salaries above R500 000 over the next 12 months
- Pay 1% of total salaries each month, declared with the EMP201
- Appoint a Skills Development Facilitator (SDF) to represent you to your SETA
- Submit a Workplace Skills Plan and Annual Training Report (WSP-ATR) by 30 April to claim the mandatory grant
SDL is due from registered employers. You can register once for all tax types using the SARS client information system.
Registration and Legal Requirements
Under the Skills Development Levies Act 9 of 1999, the levy is 1% of the leviable amount, as set out in the SARS employer guide. An employer who expects total salaries above R500 000 over the next 12 months becomes liable and must register. If your leviable amount will not exceed R500 000, you are exempt and need not register.
Some employers are exempt altogether:
- National and provincial public service employers
- Public entities with 80% or more of their funding from Parliament
- Public benefit organisations exempt from income tax under section 10(1)(cN) of the Income Tax Act, with a Tax Exemption Unit exemption letter
- Municipalities with a ministerial certificate
Of the levy, 80% goes to the SETAs and 20% to the National Skills Fund.
Which SETA will I fall under?
Levies are distributed through the SETAs. Ask your SETA or SARS how an employer is allocated to a SETA, and how to request a change if you think you are linked to the wrong one.
Documents and Ownership Information Required
- Your SARS registration, with SDL activated
- Proof of your monthly EMP201 payments
- A letter on company letterhead appointing your Skills Development Facilitator (MICT SETA asks for this)
- Your Workplace Skills Plan and Annual Training Report
Only registered SDFs may represent levy-paying companies and submit WSPs. MICT SETA says the SDF must be registered and accepted before starting the role; see its SDF information page. Other SETAs may set their own procedures, so check with yours.
Tax, Licence and Compliance Requirements
The levy is 1% of the total amount paid in salaries, including wages, overtime, leave pay, bonuses, fees, commissions and lump sum payments. Declare and pay it monthly with your EMP201.
The mandatory grant is 20% of the levies you pay, and you claim it through the WSP-ATR. Beyond that, sectoral (discretionary) grants are awarded by the SETA on its own criteria.
Process, Deadlines and Ongoing Obligations
- Pay SDL to SARS within seven days after the end of the month. If the seventh day is a weekend or public holiday, pay by the last business day before it.
- Submit your WSP-ATR by 30 April each year under the SETA Grant Regulations 2022, as summarised in the merSETA infographic. A SETA may change the date by notice, so confirm it with your SETA.
- Keep your SDF appointment current.
Frequently Asked Questions
Do I have to pay the skills development levy?
Yes, if you expect to pay total salaries above R500 000 over the next 12 months. Below that, you are exempt and need not register.
What is the SDL rate?
1% of total salaries, paid monthly with the EMP201.
When must I pay SDL?
Within seven days after the end of the month.
Can I get any of it back?
Yes. The mandatory grant is 20% of the levies you paid, claimed by submitting the WSP-ATR through your SDF by 30 April.
What is a Skills Development Facilitator?
A registered SDF represents levy-paying companies to the SETA and submits the Workplace Skills Plan and Annual Training Report.
Are any employers exempt from SDL?
Yes: public service employers, public entities funded 80% or more by Parliament, qualifying public benefit organisations and municipalities with a ministerial certificate.
Confirm your obligations with SARS and your SETA. See business and compliance requirements and company registration requirements.