Are YOU being paid out your Mandatory and Discretionary Grants?

There are 2 types of Grants that are awarded to companies to assist with Training and Upskilling. These are the Mandatory Grants and Discretionary Grants. Let’s look at the difference between these Grants and the benefits of each:

Mandatory Grants

This Grant is payable to all levy paying companies upon submission and approval of the WSP/ATR Report. This is only paid after the WSP/ATR Report has been approved, which ensures that the SETA’s Quality Standards have been met in the submission. All submissions must be made before the deadline on 30 April, otherwise the Mandatory Grant will not be awarded.

This Grant will award companies 20% of the total annual levies that are paid by the employer each month. These pay-outs are made quarterly.

Discretionary Grants

Discretionary Grants are awarded, as the name indicates, at the discretion of the SETA. Companies will need to apply for this grant when the window opens, which is usually a few weeks after the WSP/ATR submission. The application process is fairly lengthy, as each company will need to specify what type of training will be implemented, the training provider that will be used, and the details of the course will need to be provided. The total cost of this training will need to be provided, including the stipend amounts that will be paid to Learners (where applicable).

Companies need to ensure that the training progammes chosen in the Discretionary Grant, address the Scarce and Critical skills shortages in their respective SETA. A complete list of these Scarce and Critical Skills can be obtained from the SETA’s websites.

Successful Discretionary Grant applicants can get up to 49.5% of the total levies paid back annually. This grant must be used to pay for the training that was specified in the application. This grant will be paid out quarterly, and in order for payment to be made, companies must provide progress reports for each of the learners sent on training.

Who can apply for Discretionary Grants:

  1. NGOs and cooperatives in the Sector
  2. A public education and training institution
  3. A levy paying employer, who has submitted the WSP/ATR Report
  4. A non-levy paying employer, within the jurisdiction of the SETA.

Do you need assistance with these Grants?  EconoBEE is happy to help you understand these Grants and assist with these applications. The window for Mandatory Grants is now open for most SETAs.

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