SETA funding is skills development money, not business finance. It comes from the skills development levy that employers pay, and it flows back to employers and learners through grants and programmes under the Skills Development Act 97 of 1998 and the Skills Development Levies Act.
Understanding which of the two audiences you fall into — employer or learner — determines which door you knock on, and most confusion in this area comes from mixing them up.
Eligibility Requirements at a Glance
What is generally required, by audience.
- Employers — registration with SARS for the skills development levy and with the relevant SETA
- Employers claiming a mandatory grant — a Workplace Skills Plan and Annual Training Report submitted by the deadline, and a registered skills development facilitator
- Employers seeking discretionary grants — a response to a published call, with the training aligned to the SETA’s priorities
- Learners — a place on a registered learnership, apprenticeship, internship or bursary programme
- Learners — a valid South African ID and the entry requirements of the specific programme
- Training providers — accreditation with the SETA or the QCTO
- Compliance with the SETA’s reporting and administration requirements throughout
Income and Affordability Requirements
Learners do not apply to SETAs for money directly, in general. SETA funding flows to employers and accredited providers, who then recruit learners onto funded programmes. The practical route for a learner is to apply for advertised learnerships, apprenticeships and internships, not to approach the SETA for a grant.
Learnerships pay a stipend. A registered learnership combines structured learning with workplace experience under a written agreement between the learner, the employer and the training provider, and the learner receives a stipend. That is what makes it materially better than self-funded study for most people.
Find the right SETA. There are SETAs for each economic sector, and the one relevant to you follows the sector you work in or want to enter. Each publishes its own learnerships, calls and criteria. Applying to the wrong SETA wastes time.
Employers should not leave the mandatory grant unclaimed. Levy-paying employers can recover a portion of their levy by submitting a Workplace Skills Plan and Annual Training Report by the prescribed deadline. Missing the deadline forfeits the grant for that year, and many small employers miss it simply from not knowing.
The skills development facilitator is the person who does that work, and appointing one — internally or externally — is what makes the system work for a small employer.
Confirm current criteria, deadlines and grant structures with the relevant SETA. These are set by each SETA within the national framework and are revised annually.
Credit and Financial Requirements
Levy registration is a SARS obligation. Employers above the prescribed payroll threshold must register for and pay the skills development levy. Confirm the current threshold and registration requirements with SARS.
Tax compliance matters for grants. A SARS tax compliance status PIN is commonly required for discretionary grant funding, and non-compliant employers are generally excluded.
Discretionary grants follow published calls with defined windows, priorities and criteria. They are competitive, and applications are assessed against the SETA’s sector skills plan. Watch the SETA’s website for calls rather than applying speculatively.
Funded training must be accredited. Programmes must be delivered by providers accredited by the SETA or the QCTO against registered qualifications. Funding does not attach to unaccredited training.
Reporting obligations continue after approval. Learner registration, attendance, assessment records and completion reporting are conditions of the funding, and failing to report can lead to funds being reclaimed.
Nobody can sell you SETA funding. Any person or agency charging a fee to secure a grant, a learnership place or a stipend is committing fraud. Learnership recruitment is free to enter and learners are paid, not charged.
Documents and Verification Required
What is generally required.
- For learners: certified copy of your South African ID and your highest qualification
- For learners: a curriculum vitae and proof of residence
- For learners: banking details in your own name, for stipend payment
- For employers: SARS skills development levy registration details
- For employers: a Workplace Skills Plan and Annual Training Report
- For employers: a SARS tax compliance status PIN
- For employers: CIPC registration documents and a company profile
- For employers: signed learnership agreements and provider accreditation details
How to Apply and Improve Approval Readiness
Learners should identify the SETA covering the sector they want to enter, watch its learnership listings and the career pages of employers in that sector, and apply directly. Applications are free.
Employers should register for the levy, appoint a skills development facilitator, submit the Workplace Skills Plan and Annual Training Report by the deadline every year, and watch for discretionary grant calls in their sector.
- Identify the SETA for your sector before doing anything else
- Learners: apply for advertised learnerships, not to the SETA for a grant
- Learners: never pay anyone for a learnership place or a stipend
- Employers: register for the skills development levy with SARS
- Employers: appoint a skills development facilitator
- Employers: submit the Workplace Skills Plan and Annual Training Report on time
- Employers: get the SARS tax compliance status PIN before applying for grants
- Watch for published discretionary grant calls rather than applying speculatively
- Use only accredited providers and registered qualifications
- Meet the reporting obligations after approval
Frequently Asked Questions
Can a learner apply to a SETA for money?
Generally no. SETA funding flows to employers and accredited providers, who recruit learners onto funded programmes. Apply for advertised learnerships instead.
What is a mandatory grant?
A portion of the skills development levy that a levy-paying employer can recover by submitting a Workplace Skills Plan and Annual Training Report by the prescribed deadline.
Do learnerships pay?
Yes. A registered learnership pays the learner a stipend under a written agreement between the learner, employer and training provider.
Can I pay someone to get me a learnership?
No. Learnership recruitment is free to enter and learners are paid. Anyone charging a fee for a place or a stipend is committing fraud.
Grant structures, deadlines, levy thresholds and programme criteria are set by each SETA, SARS and the Department of Higher Education and Training, and are revised annually. Confirm current requirements with the relevant SETA and SARS.