The mandatory grant requirements and criteria have been drawn from the Sector Education and Training Authorities (SETA) Grant Regulations Regarding Monies Received by a SETA and Related Matters (Regulation 27240 of 1 February 2005). Sub-regulations 6 and 10 have specific reference to this policy.
Allocation of mandatory grants by SETA
1. Subject to regulation 10, a SETA must allocate a mandatory grant to:
- An employer employing 50 or more employees that has submitted an application for a Workplace Skills Planning or Implementation Report grant in accordance with sub-regulation (2) and in the form prescribed in Annexure 2 to these regulations
- An employer employing less than 50 employees that has submitted an application for a grant in accordance with sub-regulation (2); on a simplified form provided by the SETA
- An employer who achieves a national standard of good practice in skills development. In this respect the SETA must secure agreement on information required from the employer
2. An application for a mandatory grant in terms of subregulation (1) must be submitted by:
- 30 September 2005 for the 2005/6 financial year or 30 June 2005 in respect of unclaimed mandatory grants in respect of previous financial years
- 30 June for all subsequent financial years
- The mandatory grant to be paid by the SETA
3. A mandatory grant must be equivalent to 20% of the total levies paid by the employer in terms of section 3(1) read with section (6) of the Skills Development Levies Act during each financial year; and must be paid to the employer at least quarterly
- An employer who is newly registered must submit an application for a mandatory grant within six months of registration in the case of an employer who has registered for the first time in terms of section 5(1) of the Skills Development Levies Act
- If the employer does not claim a mandatory grant within the time periods specified in sub-regulation (2), the SETA must transfer the employer\'s unclaimed mandatory grant funds to the discretionary grant fund.