Skills Development Act in South Africa

 Skills development Act was created for a number of reasons.  South Africans who have a disability benefit from the Skills Development Act for the following reasons:

  • Improvement of quality of workforce and job opportunities
  • Improvement of productivity in workplace
  • Improvement of self-employment
  • Investment within workforce by training and learnerships

The Act encourages employers to:

  • Use workplace as an active learning environment
  • Provide employees with new skills and opportunities
  • Employ those who are previously disadvantaged
  • Engage in learnership programs
  • Improve employment of persons who were previously disadvantaged due to unfair discrimination by offering training
  • Assisting work seekers to find work
  • Assisting retrenched workers to re-enter the labor market
  • Assist employers to find qualified employees and provide and regulate employment services

Those Purposes Are To be Achieved Through:

  • The National Skills Authority
  • Provincial andlabour offices of the department
  • The National Skills Fund
  • SETAs
  • Skills Development Levy
  • Skills development institutes
  • Accredited trade test centres
  • Skills development forum for each province
  • Quality Council for Trades and Occupations
  • Working in unison with the South African Qualifications Authority
  • Skills development forum per province
  • National artisan moderation body
  • Productivity South Africa

Employees must pay a skills development levy each month.  The following organizations are excluded from the levy:

  • Public service
  • Religious or charity organizations – NGOs
  • Public entities with 80 percent remuneration from parliament
  • Employers whose payroll is less than R250 000 per year
  • Those who do not have to register according to the Income Tax Act

Funds are distributed in the following way:

  • SETAs get 80percent of the money
  • Employers get back some of the money back from SETAs when offering training
  • Skills Development Fund gets 20 percent of the money that is used for training


For more information about training that we offer, please contact Elsie Botha on 011 763 3366 or and Stephen Bergers on 011 763 2429 or