What is a learnership? Learnerships are professional and vocational education and training programmes.
Learnerships combine theory and practice and culminate in a qualification that is registered on the NQF.
Learnerships are based on a legally binding agreement between the learner, the provider and the
Learnership criteria Must consist of a structured learning component.
Must include practical work experience of a specified nature and duration.
Must lead to a qualification.
Must relate to an occupation.
Must be registered by the DoL.
Employer obligations Must employ the learner for the specified period (employment contract).
Must provide the learner with specified practical work experience.
Release the learner to attend the education and training component of the programme.
Benefits of implementing Tax incentive
learnerships Cash Grants (Discretionary grants and / or skills development rebates)
(refer to next couple of pages for detail) BEE scorecard
Increased skills in the workplace
Implementation considerations 30%of notional hours to be spend in structured training sessions (+/- 45 days over 1 year)
Workplace coach to be appointed, trained and allowed to assist learners in the workplace
Tax incentive Allowance which may be deducted from the employer’s income from trade when his / her taxable
income is determined.
Requirements that must be met in order for employer to qualify for the allowance:
Learnership agreement must be signed by all parties and registered with the relevant SETA.
Learnership agreement must have been entered into between 1 Oct 2001 and 30 Sept 2011.
The company applying for the allowance must be the original employer in terms of the learnership agreement.
One learnership agreement may not replace the other.
The learnership agreement must have been entered into in the course of a trade.
The employer must have the following documentation available:
Name of SETA where the learnership agreement is registered.
The title and code of the learnership programme, as per DoL.
Full names and identification numbers of learners participating in the learnership programme.
Confirmation that the employer has complied with all Skills Development Levies Act regulations.
Confirmation from the SETA that the learnership has been successfully completed (at end of programme).
Tax incentive table
Agreement (start) 70% of annual wage, 100% of annual wage, 150% of annual wage, 175% of annual wage,
up to maximum of up to maximum of up to maximum of up to maximum of
R20 000 R30 000 R40 000 R50 000
Completion (end) R30 000 R30 000 R50 000 R50 000
Where a learnership agreement is terminated prior to its completion, there will be some tax
Cash grants Employers who pay the skills levy can claim cash grants when they provide training.
Learnership / discretionary grants
Employers to get in touch with Seta to determine whether they have discretionary funds available and to submit
application to Seta.
Employer to look at critical and / or scare skills when applying for discretionary funds to offset learnership costs.
To meet equity target when applying for grants.
Skills development rebates
50% mandatory grants for WSP and ATR.
Amount dependant on your annual skills levies amount paid to the Seta.
BEE scorecard 6 points for implementing learnerships, if the following requirements are met:
5% of employees enrolled in learnership programme.
Adjusted for gender.
Compliant with skills related legislation.
Increased skills Skilled people make better workers as they:
Are more likely to do the correct thing the first time and make fewer mistakes.
Are more likely to ‘get the best’ out of their machines.
Tend to be more independent workers.
Are more motivated because they know what they are doing is important to the overall business and might also
be less likely to leave their jobs.
261 Surrey Avenue, Ferndale, Randburg, 2194
Tel: +27 11 886-0042, Fax: +27 11 886-0053, email@example.com