The Grant Nobody Claims
Every month, thousands of South African companies pay their Skills Development Levy (SDL) to SARS without ever claiming the grants they're entitled to receive in return. The result is a massive pool of money that sits with SETAs, often allocated to training programmes that may not align with a specific employer's workforce needs — because that employer never applied.
If your company's annual payroll exceeds R500,000, you are liable for SDL at 1% of total payroll. For a company with a payroll of R5 million, that's R50,000 per year in SDL. Some of that money is available to come back to you as a grant — but only if you apply for it. This guide walks you through how the SDL system works and how to claim what you're entitled to.
How the SDL Works: The Basics
The SDL is a payroll tax administered by SARS under the Skills Development Levies Act. SDL is paid monthly alongside PAYE and UIF, and is allocated to the SETA that covers your company's primary industry sector. The SETA in turn uses these funds for skills development purposes across the sector.
Of the SDL collected, the distribution is broadly as follows:
- 80% to SETAs — the majority of SDL revenue, used for grants and sector training initiatives
- 20% to the National Skills Fund — administered by the DHET for national skills priorities
Of the 80% retained by SETAs, a portion is available as grants back to levy-paying employers. This is where your opportunity lies.
Mandatory Grants vs. Discretionary Grants
There are two types of grants available to SDL-paying employers:
Mandatory Grant (20% of your SDL contribution)
This is your right as an SDL-paying employer. If your company submits a Workplace Skills Plan (WSP) and an Annual Training Report (ATR) to your SETA by the submission deadline (typically 30 April each year for most SETAs), you are entitled to a mandatory grant equal to 20% of your SDL contributions for that year. This is not discretionary — it is a fixed entitlement tied to compliance with reporting requirements. Many employers miss this because they either don't know about the deadline, or they don't have an appointed Skills Development Facilitator (SDF) to manage the submission.
Discretionary Grants (allocated on application)
Beyond the mandatory grant, SETAs allocate discretionary grants to employers who apply for funding to support specific training initiatives — learnerships, skills programmes, bursaries, and apprenticeships. Discretionary grants can substantially offset your training costs, but they are competitive and subject to application deadlines and available SETA budget. SETAs publish discretionary grant windows, typically once or twice per year, and applications must align with the SETA's sector skills plan priorities.
"Submitting your WSP and ATR by the April deadline is the single most important thing a South African employer can do to start recovering SDL money. It is a 20% return with no risk attached — just paperwork."
Step-by-Step: How to Claim Your SDL Grants
Identify your SETA
Your SDL is directed to the SETA that covers your company's primary business activity. If you operate in retail, that's the W&RSETA. Financial services — FASSET. Contact centres or tourism — Services SETA. Education and training — ETDP SETA. If your company spans multiple sectors, you register with your primary SETA. Check the SETA lookup tool on the DHET website if you're uncertain.
Register with your SETA as a levy-paying employer
If you haven't already, register on your SETA's online portal. You'll need your company registration number, SARS reference, SDL reference number, and company contact details. Registration is free.
Appoint or register a Skills Development Facilitator (SDF)
An SDF is the person responsible for managing your company's skills development planning and SETA reporting. This can be an internal employee (registered with the SETA as your SDF) or an external consultant. FPT Academy can assist with SDF services for smaller organisations who don't have this capacity internally.
Submit your WSP and ATR by 30 April
The Workplace Skills Plan (WSP) describes the training you plan to deliver in the coming year. The Annual Training Report (ATR) reports on the training you actually delivered in the previous year. Both are submitted via your SETA's online portal. Accurate, complete submissions are essential — your mandatory grant claim is tied directly to these documents.
Apply for discretionary grants during the SETA's funding window
Monitor your SETA's website for discretionary grant application windows. These open at specific times of the year and close with hard deadlines. Applications typically require a detailed training proposal, learner demographics, accredited provider confirmation, and a budget breakdown. Approved training must be with accredited providers — another reason to ensure FPT Academy's accreditation with your relevant SETA before structuring a programme.
Maintain documentation throughout the training
Grant claims must be substantiated with evidence: signed learner agreements, attendance registers, facilitator records, learner portfolios, and completion certificates. If you cannot produce this documentation during a SETA audit, your grant may be recalled. FPT Academy maintains full learner records and can provide all required documentation at claim stage.
How Accredited QCTO Training Qualifies
SETA discretionary grants are allocated specifically for training on SETA-accredited programmes delivered by SETA-accredited providers. QCTO Occupational Certificates delivered through a provider like FPT Academy — which holds accreditation with Services SETA, W&RSETA, and ETDP SETA — meet this requirement. When you submit a discretionary grant application, naming FPT Academy as your provider and identifying a QCTO-registered qualification gives your application maximum credibility.
Ready to take the next step?
Speak to an FPT Academy advisor about structuring your training programme to maximise SDL grant recovery. We work with your SDF or assist as your SDF.
Contact an Advisor