Learnerships

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Learnerships and their  benefit to companies explained in simple, easy to understand language.

Learnerships form a part of Skills Development and as that is a major focus in South Africa, there are many benefits and advantages linked to Learnerships and their implementation.

There is a push from government to get organisations to implement Learnerships and therefore companies that implement them gain enormous benefit.

The major benefits of Learnerships to an organisation.

1) B-BBEE Points

2) Tax Concessions Learnership pic

Learnership’s  value to your B-BBEE Scorecard

A company can earn 6 valuable points for implementing a Learnership. To reach this target, 5% of the total workforce would be required to be on a learnership.

An adjustment for gender does apply.

Companies get a R 30 000 tax rebate for each learner that enrols on a Learnership for each year they are on the learnership.  There is an additional R 30 000 paid per learner on completion of the learnership.

Companies get a R 50 000 tax rebate for each disabled learner on a learnership. There is an additional R 50 000 per disabled learner tax concession at the end of the learnership.

The Formalities

Agreements are entered into between all the parties concerned.

The Learner (Employee) , the Company (Employer) and the Training Provider.

This way each party has a vested interest in the success of the training intervention.

One of the reasons the company promotes Learnerships is to address shortages of skills in the industry and learnerships are thus implemented to address these shortages and skills gaps.

Two Types of Learnerships

Employed Learnerships (18.1)

Unemployed Learnerships (18.2)

This means that organisations may place their current employees on learnerships, or take on unemployed people and place them on learnerships and at the same time offering them work place experience.

The same tax concessions and B-BBEE points apply for employed and unemployed.

Funding for Learnerships (Payment for the Training Provider) can be either funded or self funded.

Funded Learnerships

SETA’s offer discretionary grants in the form of bursaries to pay for the training of a Learner. These can be applied for by the company when the SETA advertise their funding window.  This means that in addition to all the benefits that the Learnership has for an organisation, the training can also be paid by means of a SETA grant.

Self funded Learnerships

Organisations may choose to place their staff on a Learnership and pay the Training Provider themselves.  This spend can be claimed against their mandatory grant and go towards their B-BBEE skills development spend.

Important Facts to remember.

All Learnerships funded and self funded need to be registered with the relevant SETA  before training takes place in order to claim the tax concession from SARS.

Why don’t all companies implement Learnerships?

Learnerships need careful planning and implementation.

There is a lot of administration required and for companies without the capacity to deal with this extra work, it can become a nightmare.

Most of the time companies don’t know where to start and how to find a Training Provider that offers Learnerships.

We offer a solution that will fit your business structure. We understand that businesses have different operational requirements and abcence from work to attend training courses at inconvenient times may be problematic.

We will tailor a solution to suit your needs. Training Providers offer Saturday classes, after hours classes, a few hours per week, or other options that may suit your business needs.