Introduction

Since 2002 Eskilz has offered financial aids to both individuals and corporate in the form of Personal Finance, DTI finding and SETA Funding. Unfortunately, We have continuously had a challenge of clients not understanding or miscommunication between DTI Funding and SETA Funding. So without further ado let’s break it down.

DTI Funding

If you have ideas of starting your own business, or have an existing business in need of finance, the Department of Trade and Industry (DTI) has a range of incentive schemes, loans and grants available that could be your ticket to business success.

The aim is to help youth development, women, and B-BBEE.

Grants available through the DTI include:

  • Aqua-culture Development and Enhancement  Programme (ADEP)
  • Automotive Investment Scheme (AIS)
  • Black Business  Supplier Development Programme (BBSDP)
  • Business Process Services (BPS)
  • Capital Projects  Feasibility Programme (CPFP) 
  • Critical Infrastructure Programme (CIP) 
  • The Co-operative Incentive Scheme (CIS) 
  • Incubation Support Programme (ISP) 
  • The Manufacturing  Competitive Enhancement Programme (MCEP)
  • Manufacturing Investment Programme (MIP)
  • National Youth Development Agency (NYDA) 
  • People-carrier Automotive Investment Scheme (P-AIS)
  • The Sector Specific Assistance Scheme (SSAS) 
  • Support Programme for  Industrial Innovation (SPII)

Our DTI Process

Step 1: Once Client pays the initiation fee and the skills  consultants receive the SLAs to add on the client listing, they need to check the SLA under the Skills Contract if DTI FUNDING is added on or upon speaking to Clients it has been established the clients need DTI funding, if so details to be forwarded to Camilla via email.

Step 2: Camilla to send out an introductory email to the clients with a questionnaire they will need to answer

Step 3: once the email is sent. A follow-up call is made the next day in the email sent.

Step 4: Once client responds to the questions asked, and provides info, Camilla will speak to Mr. Kamal on which funding window will be appropriate for the application to be done per company

Step 6: once the funding window has been established per client we will request info from the company as per that specific funding window. Once we receive all info we will then finalize the application and send off. And thereafter communication and follow-ups will be made on application done.

N.B: there will be a DTI contract that the client will need to sign, prior to us starting and if the client does not agree to the terms and conditions then we will not be able to assist.

SETA Funding

Do you struggle to find the funding needed to meet your skills development targets under the new BBBEE codes? If so, take advantage of SETA funding that is now available to develop your own staff, interns and unemployed learners.

We can assist you to access additional funds to Increase your BBBEE score and save on training per learner by paying less tax and salaries while improving staff retention and performance.

Learnerships are a great way to increase your training spend as you can count the salary of the learner as a training expenditure. Through the learnership process, the employer is able to increase the level of skills of his/her employees and reclaim the cost of the learnership fees from their SETA.

Eskilz is accredited with all 23 SETA’s.

    • Discretionary Grants – It is a grant that is paid to applicants at the discretion of the SETA’s. It’s called discretionary as grants can cancelled, reduced or withdrawn.
      • What makes us unique? through the 16 years, we have developed and built strong relationships with all 23 SETA which allows us to align client applications according to SETA criteria and requirements. We have a 100% success rate and have got all our clients funding through SETA to date.

 

  • Mandatory Grants – Mandatory means that they must be paid. To claim back the 20% for mandatory grants employers have to submit a Workplace Skills Plan and an Annual Training Report on or before 30 April of each year.

 

Who has to pay skills development levies? Any company with an annual payroll of R500 000.00 or more

Where are levies paid? Levies are paid to SARS, who in turn transfers them to DHET; DHET then transfers them to the relevant SETA

What percentage is paid to SARS? 1 percent of the annual payroll is paid to SARS

 

 

 

 

 

 

 

 

BREAKDOWN OF THE 1% PAID TO SARS

20%National Skills Fund
10%SETA’s Administration
0.5%QCTO
30%PIVOTAL Grants
19.5%Discretionary Grants
20%Mandatory Grants (50+ staff) | Less than 50, then we submit a simplified version of WSP&ATR

Mandatory grants are submitted every April and sometimes with DG, depending on DG Windows.

The Breakdown:

Top Tip: Where an employer expects that the total salaries will be more than R500 000 over the next 12 months, that employer becomes liable to pay SDL. 1% of the total amount paid in salaries to employees (including overtime payments, leave pay, bonuses, commissions and lump sum payments).

Company pays SDL to SARS – 100% of SDL is split:

  1. 20% WSP&ATR Submissions in April of every year.

Eg: If a company pays R100 per month, that is R1200 per annum. They then can claim back 20% of that annual SDL Amount of R1200 which is R240

  1. 49.5% + Top Up is claimed back through DG (Discretionary Grants). This can be accessed by both SDL Paying and SDL Non paying companies. Funding from R5K to R1mil can be funded. Client can stipulate how much they want.

The SETA shall allocate at least 80% of its total 49.5% discretionary grants within a financial year (1 April – 31 March) towards PIVOTAL programmes to address critical and scarce skills within its sectors as set out in the Sector Skills Plan (SSP) in accordance with the new Regulations.

Discretionary Grants are aimed to encourage companies to invest in skills development:

  • Learnerships – formally registered with the department of labour and contains both practical (70%) and theoretical (30%) components leading to  a full qualification.
  • Skills programmes – short courses (1 day, a week, a month, etc.), consisting of either one or more unit standards.
  • Apprenticeships – on-the-job training and often some accompanying study (classroom work and reading) and enables practitioners to gain a license to practice in a regulated profession.
  • Workplace Experience Placements – paid or unpaid, is part of a course of study and usually arranged through a university with an employer or by the student and is for an agreed period of time.
  • Internships – a programme for candidates who have completed their training and still lack the workplace experience before they can be employed.
  • Bursaries

The Purpose of the Discretionary Grants

  • For the SETA to implement the Sector Skills Plan
  • For the SETA to achieve its objectives in relation to the development of the sector
  • For the SETA to address the Scarce and Critical Skills in the sector

WHO MAY APPLY FOR DISCRETIONARY GRANTS?

  • Employers within the jurisdiction of SASSETA who are up-to-date with the levy payments – including those exempted in terms of the SDLA –
  • Discretionary grants are available to employers, training providers and workers and the unemployed
  • Accredited Education and Training Providers and emerging training providers within the SASSETA sector.
  • Associations or organizations that meet the criteria for the payment of such a grant.
  • An employer, if the employer has submitted an application for a discretionary grant in the form determined by the SETA

*Discretionary Grants are open throughout the year