How does investing in a learnership benefit you?

The South African legislative framework is highly supportive of learnerships. For employers investing in this learnership the benefits include:

• Building a more competent workforce with sound understanding of basic business concepts and practical business experience.

• Training that is classified as category C or D training on the Learning Programme Matrix in the B-BBEE Codes of Good. practice, ensuring maximised compliance points for your spend.

• Addressing skills gaps and furthering employment equity goals included in Workplace Skills Plans.

Employers can apply to their sector SETA to register either funded or non-funded learnerships. During open funding windows employers can apply for full or partial funding for the training and stipend components of planned learnerships. We would be happy to provide more information regarding the timing of funding windows and the process of applying for funded learnerships.

Additional information regarding current amendments, recommendations and interpretation notes are available on request. Employers are advised to seek advice from a trusted tax consultant in this regard.

• Employers can benefit from two (2) SARS tax incentives * when running a registered learnership.

(i) Employers can claim a direct monthly tax benefit when they host a learner in the workplace and add a learnership stipend to their payroll by claiming the Employee Tax Incentive (ETI) on their PAYE.

(ii) Employers can also derive a substantial indirect tax benefit on annual taxable income as explained in Section 12H of the Income Tax Act 58 of 1962 (as amended). In terms of the act employers can claim an annual enrollment incentive of up to R60 000.00+ per registered learnership.