How Does the Skills Development Levy Work in South Africa?
Every transport company with an annual payroll exceeding R500,000 must pay the skills development levy (SDL) to SARS. This levy equals 1% of your total payroll, collected monthly through your PAYE submissions.
Here's where it gets interesting for transport operators. Of that 1%:
- 20% goes to the National Skills Fund
- 80% goes to your relevant SETA (in your case, TETA)
From the 80% allocated to TETA, you can claim back a significant portion through mandatory and discretionary grants, provided you meet certain requirements.
Mandatory Grant (20% of your levy contribution): To claim this, you must submit a Workplace Skills Plan (WSP) and Annual Training Report (ATR) to TETA by 30 April each year.
Discretionary Grant (up to 49.5% of your levy contribution): TETA allocates these funds for specific projects, including learnerships, bursaries, and skills programmes. Competition for discretionary grants is fierce, and applications require detailed documentation.
The practical reality? Most SA transport companies claim their mandatory grant but miss out on discretionary funding entirely. According to TETA's annual reports, millions of Rands in discretionary grants go unclaimed each year.
Take Action
Check whether your company submitted a WSP and ATR for the current year. If you missed the April deadline, start preparing for next year immediately, and ensure your HR system can generate the training records TETA requires.
How to Apply for TETA Learnerships in South Africa
Applying for TETA learnership funding involves several stages. Here's the process broken down:
Step 1: Register with TETA
Your company must be registered with TETA as a levy-paying employer. If you've been paying SDL through SARS, you should already be in the system. Verify your registration status through the TETA online portal.
Step 2: Submit Your Workplace Skills Plan
The WSP outlines your training intentions for the coming year. It must include:
- Number of employees by occupational category
- Planned training interventions
- Budget allocation for skills development
- Target number of learners for learnerships
Your People & HR module should maintain accurate employee records that feed directly into WSP preparation. T-ERP's workforce planning tools can categorise employees by occupation code, which simplifies SETA reporting.
Step 3: Select an Accredited Training Provider
This step trips up many operators. TETA maintains a list of accredited providers qualified to deliver specific learnerships. Using a non-accredited provider means your training spend won't count for grant recovery or B-BBEE purposes.
Accredited providers must hold valid TETA accreditation for the specific learnership programme. They should provide:
- Learning materials aligned to SAQA-registered unit standards
- Qualified assessors and moderators
- Workplace integration support
- Learner support services
Step 4: Apply for Discretionary Grant Funding
TETA opens funding windows throughout the year. Applications must demonstrate:
- Alignment with the National Skills Development Plan
- Capacity to host learners in a workplace environment
- Commitment to employ learners after completion
- Clear project management and reporting capability
Grant applications require detailed learner information, employer commitments, and evidence of workplace readiness. This is where HR systems prove their worth, as manual record-keeping rarely produces the documentation quality TETA requires.
Transport Sector Learnerships Available Through TETA
TETA offers numerous qualifications relevant to transport, logistics, and mining operations. The most popular for fleet operators include:
National Certificate: Professional Driving (NQF Level 3)
This learnership develops competent professional drivers. It covers:
- Vehicle operation and control
- Defensive driving techniques
- Load securing and documentation
- Regulatory compliance (RTMS, AARTO)
Duration: 12 months
Typical cost: R35,000 to R55,000 per learner (before grant recovery)
National Certificate: Road Transport Operations Supervision (NQF Level 4)
Ideal for developing supervisors and operations controllers. Content includes:
- Fleet scheduling and dispatch
- Driver performance management
- Regulatory compliance oversight
- Incident investigation basics
This programme feeds directly into operational improvement. Companies investing in supervisory training typically see better driver performance management outcomes.
National Certificate: Freight Handling (NQF Level 2-3)
For companies operating distribution centres or handling cargo, this learnership covers:
- Warehouse operations
- Inventory management
- Material handling equipment
- Health and safety compliance
Diesel Mechanic Apprenticeship
While technically managed through merSETA, many transport companies pursue diesel mechanic development. TETA does offer related programmes in fleet maintenance supervision that complement technical training.