Skills Development Levies and the submission of your Workplace Skills Plan (WSP) and Annual Training Report (ATR)

What is the purpose of this act of the Skills Development Levies Act (Act 9 of 1999)?

A shortage of skilled employees is one of the biggest challenges facing South African businesses. To address this, the Skills Development Levies Act introduced a levy-grant system. This requires companies to contribute to skills development through a monthly levy, while also giving them a chance to access some of these funds back.

To qualify for a portion of your Skills Development Levy (SDL), companies must submit a Workplace Skills Plan (WSP) and Annual Training Report (ATR) to their relevant SETA each year. These submissions show how the business plans to train employees and what training was completed. The annual deadline is usually 30 April.

Who must pay towards the Skills Development Levy?

If your company’s annual payroll is more than R500,000, you are required to pay 1% of your total payroll each month as an SDL.

Who must register to pay the Levy?

Employers liable for SDL must register with SARS by completing the SDL 101 form (available at SARS offices or online).

When registering, you also need to indicate which Sector Education and Training Authority (SETA) your company belongs to. This ensures your WSP and ATR are submitted to the correct SETA by the 30 April deadline.

To whom are Levies payable?

Skills Development Levies are paid to SARS, which acts as the collecting agent for the SETAs.

Each month, employers submit an EMP 201 return to SARS, which reflects the amount payable.

How is Skills Development Levy Calculated?

The SDL is 1% of the total remuneration paid to employees, excluding certain items specified by SARS.

The following are included in the calculation:

• Overtime payments

• Leave pay

• Bonuses

• Commissions

• Lump sum payments

By when should a company pay a Skills Development Levy?

The SDL must be paid to SARS within 7 days after the end of each month.

If payment is late, SARS charges interest at the prescribed rate for Income Tax and may add a 10% penalty on the unpaid amount.

What does SARS do with the Skills Development Levy that is paid by employers?

Funds collected are divided as follows:

• 80% goes to the relevant SETA

• 20% goes to the National Skills Fund

The SETAs use these funds to pay levy grants to qualifying employers, while the National Skills Fund supports skills development projects outside the scope of SETAs.

How do companies recover Skills Development Levies that are payable by means of grants?

Here’s the important part: companies cannot claim back all the money spent on training. Instead, they can reclaim a portion of the levies already paid to SARS:

• 20% of SDL is available as a Mandatory Grant when WSP and ATR submissions are submitted on time and approved.

• Up to 49.5% of SDL may be available through Discretionary Grants, which are applied for separately. Approval depends on SETA priorities, available funding, and compliance.

This means you are reclaiming part of your levy, not the full cost of training programmes.

How Chamlabour can help?

At Chamlabour, we simply WSP and ATR submissions. We ensure your reports are accurate, compliant, and submitted on time—so you don’t miss out on the portion of SDL you’re entitled to.

👉 Contact us today for a free quotation or to find out how we can assist with your next submission.