Sector Education and Training Authorities (SETAs) administer South Africa's skills development levy and fund workplace training through grants. If your company pays the 1% Skills Development Levy, you can claim back up to 20% through mandatory grants, with the remaining 80% available via discretionary grants for learnership, internship, and training projects. This guide covers all grant types and how to access them.
Who This Is For
- Employers paying the Skills Development Levy (payroll > R500,000/year)
- Small and medium businesses seeking training subsidies
- Training providers seeking accreditation and funding
- HR professionals managing workplace skills development
About SETAs
What Are SETAs?
South Africa has 21 Sector Education and Training Authorities (SETAs), each responsible for skills development in specific economic sectors. SETAs are public entities established under the Skills Development Act to:
- Develop sector skills plans
- Implement learnerships and skills programmes
- Approve and accredit training providers
- Disburse skills development grants to employers
- Promote quality training aligned with national skills priorities
History & Purpose
SETAs were established in 2000 as part of South Africa's National Skills Development Strategy. The system was designed to:
- Address skills shortages: Ensure South African businesses have access to skilled workers
- Fund workplace training: Create incentives for employers to train their employees
- Promote equity: Support employment equity targets through skills development
- Align training to demand: Ensure training is relevant to sector needs
Funding comes from the Skills Development Levy, a 1% tax on payroll collected by SARS and redistributed through SETAs.
Types of SETA Grants
1. Mandatory Grants (Skills Levy Refunds)
Overview
Mandatory grants return 20% of the Skills Development Levy your company paid in the previous financial year. This is a near-automatic refund if you submit compliant WSP and ATR reports.
Grant Amount
20% of your levy paid
Example: If you paid R100,000 in levy, you can claim R20,000 back via mandatory grants.
Requirements
- Submit Workplace Skills Plan (WSP) by 30 April annually
- Submit Annual Training Report (ATR) by 30 April annually
- Be a registered levy-paying employer with your SETA
- Have a registered SDL number (issued by SARS)
- Ensure no outstanding levy payments
Use of Funds
- Training of employees
- Skills development activities
- Learnership and internship programmes
- Payment to accredited training providers
Processing Times
60-90 days after WSP/ATR submission deadline (typically July-September)
2. Discretionary Grants (Project-Based Funding)
Overview
Discretionary grants fund specific training projects aligned with sector skills priorities. These are competitive and require detailed project proposals. SETAs allocate 80% of levy funds to discretionary grants.
Grant Types
- Learnership Grants: Fund structured learning programmes (R40,000-R100,000 per learner)
- Internship/Work Experience Grants: Support workplace exposure for graduates (R30,000-R60,000 per intern)
- Skills Programme Grants: Short-course training aligned to unit standards (R5,000-R20,000 per learner)
- Artisan Development Grants: Fund apprenticeships and artisan training (R60,000-R120,000 per artisan)
- AET (Adult Education and Training): Basic literacy and numeracy programmes (R3,000-R8,000 per learner)
- Bursaries: Tertiary education funding for scarce skills (R30,000-R80,000/year per student)
Eligibility
- Must be a levy-paying employer in the sector (most SETAs)
- Non-levy payers may access some grants (e.g., small businesses, NPOs)
- Training must align with sector skills priorities
- Use QCTO-registered qualifications or SETA-approved programmes
- Must have capacity to deliver or partner with accredited providers
Application Process
- Check your SETA's discretionary grant windows (usually advertised)
- Develop a project proposal (training plan, budget, learner profiles)
- Submit via SETA portal or email by deadline
- Await evaluation and approval (60-120 days)
- Sign grant agreement and commence training
- Claim tranches (usually 3: commencement, midpoint, completion)
3. Learnership Grants
Overview
Learnerships are structured learning programmes combining theoretical training with practical workplace experience, leading to a registered qualification. SETAs provide substantial grants to employers who host learners.
Grant Structure
- Commencement tranche (40%): Paid when learner is registered and training starts
- Midpoint tranche (30%): Paid at 6-12 months (progress proof required)
- Completion tranche (30%): Paid on successful qualification completion
Employer Obligations
- Register learnership agreement with SETA
- Provide workplace experience and mentorship
- Release learner for theoretical training
- Pay learner stipend (not covered by grant)
- Submit progress reports to SETA
Popular Learnerships
- NQF Level 2-3: Contact Centre, Retail, Hospitality (R40,000-R60,000)
- NQF Level 4: Office Administration, IT Support (R50,000-R70,000)
- NQF Level 5: Project Management, Financial Services (R60,000-R80,000)
- NQF Level 6-7: Engineering, Software Development (R80,000-R100,000)
4. Internship Grants
Overview
Internship grants support work-integrated learning (WIL) and graduate internships. These are typically 6-12 month placements for recent graduates or students.
Grant Amounts (Examples)
- Graduate Internships: R50,000-R60,000 per intern (12 months)
- Student WIL Placements: R30,000-R40,000 per student (6 months)
- Vocational Internships: R25,000-R35,000 per intern (6-12 months)
Requirements
- Intern must be unemployed graduate or final-year student
- Internship must align with qualification obtained or being pursued
- Structured learning plan and mentorship required
- Duration: minimum 6 months, typically 12 months
Employer Benefits
- Subsidised talent pipeline
- Offset stipend costs
- B-BBEE skills development points
- Evaluate potential future hires
5. Bursary Programmes
Overview
Many SETAs fund bursaries for scarce and critical skills aligned to sector priorities. Students are often required to commit to working in the sector after graduation.
Bursary Models
- Direct to Student: SETA funds student, no employer commitment upfront
- Employer-Sponsored: Employer nominates employee/dependent; SETA co-funds
- Work-Back Agreements: Student commits to work for employer/sector post-graduation
Typical Coverage
- Tuition fees
- Textbooks and study materials
- Accommodation (residence or allowance)
- Meal allowance
- Sometimes laptop/equipment
Priority Fields (Vary by SETA)
- Engineering (all disciplines)
- ICT and software development
- Health sciences (nursing, medical)
- Finance and accounting
- Education and training
- Artisan trades (electrician, plumber, fitter)
Major SETAs by Sector
South Africa has 21 SETAs. Below are the top 10 by business relevance and levy collection:
1. MICT SETA (Media, Information and Communication Technologies)
Sectors Covered
- Information and Communication Technology (ICT)
- Electronics
- Advertising and Marketing
- Publishing
- Film, Television, and Broadcasting
Key Grants
- Software development learnerships (NQF 5-7): R80,000-R100,000
- ICT internships: R50,000-R60,000
- Digital marketing skills programmes: R10,000-R15,000
- Bursaries for computer science and IT: R40,000-R80,000/year
Contact
- Website: mict.org.za
- Email: info@mict.org.za
- Phone: 011 207 2600
2. AgriSETA (Agriculture Sector)
Sectors Covered
- Primary Agriculture
- Forestry
- Aquaculture
- Animal Health and Production
- Conservation and Land Management
Key Grants
- Farm management learnerships: R40,000-R70,000
- Agricultural extension officer training: R30,000-R50,000
- Artisan development (irrigation, machinery): R60,000-R100,000
- Bursaries for agricultural sciences: R35,000-R70,000/year
Contact
- Website: agriseta.co.za
- Email: info@agriseta.co.za
- Phone: 012 301 5600
3. CATHSSETA (Tourism and Hospitality)
Sectors Covered
- Tourism
- Hospitality
- Gaming
- Conservation
- Sport, Recreation, Fitness
Key Grants
- Chef/culinary learnerships: R50,000-R70,000
- Front office and guest services: R40,000-R55,000
- Tour guide certifications: R8,000-R15,000
- Hospitality management bursaries: R30,000-R60,000/year
Contact
- Website: cathsseta.org.za
- Email: info@cathsseta.org.za
- Phone: 011 217 0600
4. W&RSETA (Wholesale and Retail)
Sectors Covered
- Wholesale and Retail Trade
- Motor Trade
- Fast-Moving Consumer Goods (FMCG)
- Warehousing and Distribution
- Buying and Merchandising
Key Grants
- Retail sales and management learnerships: R40,000-R65,000
- Automotive technician training: R60,000-R90,000
- Supply chain and logistics programmes: R50,000-R70,000
- Customer service skills programmes: R5,000-R12,000
Contact
- Website: wrseta.org.za
- Email: info@wrseta.org.za
- Phone: 011 253 1000
5. Services SETA
Sectors Covered
- Property Management and Real Estate
- Business and Information Services
- Legal Services
- Community, Social, and Personal Services
- Cleaning and Hygiene
Key Grants
- Office administration learnerships: R40,000-R60,000
- Project management programmes: R50,000-R70,000
- Facilities management training: R45,000-R65,000
- Legal secretary and paralegal programmes: R35,000-R55,000
Contact
- Website: servicesseta.org.za
- Email: info@serviceseta.org.za
- Phone: 011 276 9600
6. MERSETA (Manufacturing, Engineering, and Related Services)
Sectors Covered
- Manufacturing (all sub-sectors)
- Engineering
- Metal and Engineering
- Automotive Manufacturing
- Plastics, Textiles, Clothing, Leather
Key Grants
- Artisan development (electrician, fitter, welder): R80,000-R120,000 per artisan
- Engineering learnerships (NQF 2-5): R60,000-R100,000
- CNC machinist and toolmaker training: R70,000-R100,000
- Engineering bursaries: R50,000-R80,000/year
Contact
- Website: merseta.org.za
- Email: info@merseta.org.za
- Phone: 011 484 5041
7. ETDP SETA (Education, Training and Development Practices)
Sectors Covered
- Public and Private Education
- Training and Development
- Early Childhood Development
- Adult Education and Training
Key Grants
- Teacher and educator qualifications: R50,000-R80,000
- ECD practitioner learnerships: R30,000-R50,000
- Skills development facilitator programmes: R40,000-R60,000
- Education bursaries: R35,000-R70,000/year
Contact
- Website: etdpseta.org.za
- Email: info@etdpseta.org.za
- Phone: 011 372 3300
8. HWSETA (Health and Welfare)
Sectors Covered
- Private Health Care
- Social Services and Development
- Gerontology (Elderly Care)
- Disability and Rehabilitation Services
Key Grants
- Nursing and auxiliary nursing learnerships: R60,000-R90,000
- Pharmacy assistant programmes: R40,000-R60,000
- Social work and social auxiliary work: R50,000-R80,000
- Health sciences bursaries: R40,000-R80,000/year
Contact
- Website: hwseta.org.za
- Email: info@hwseta.org.za
- Phone: 011 607 6907
9. INSETA (Insurance and Financial Services)
Sectors Covered
- Banking
- Insurance (Life, Short-term, Health)
- Asset Management and Investments
- Microfinance
- Pension and Provident Funds
Key Grants
- Financial planning and advisory learnerships: R60,000-R80,000
- Compliance and risk management programmes: R50,000-R70,000
- Insurance underwriting and claims training: R45,000-R65,000
- Finance and accounting bursaries: R50,000-R80,000/year
Contact
- Website: inseta.org.za
- Email: info@inseta.org.za
- Phone: 011 544 9300
10. CETA (Construction Education and Training Authority)
Sectors Covered
- Building and Civil Construction
- Electrical and Mechanical Engineering (Construction)
- Wood and Furniture Manufacturing
- Property Development
Key Grants
- Artisan training (electrician, plumber, bricklayer): R80,000-R120,000 per artisan
- Site supervision and management: R50,000-R70,000
- Quantity surveying and estimating: R55,000-R75,000
- Construction management bursaries: R40,000-R80,000/year
Contact
- Website: ceta.org.za
- Email: info@ceta.org.za
- Phone: 012 003 0500
Eligibility Requirements
Levy Payers (Eligible for Mandatory and Discretionary Grants)
If your company pays the Skills Development Levy, you are eligible for both mandatory and discretionary grants.
Levy Payer Criteria
- Annual payroll exceeds R500,000
- Registered with SARS for PAYE and SDL
- Assigned to a SETA based on business activities
- No outstanding levy payments or disputes
How to Check Your SETA
Your SETA is assigned based on your company's primary SIC (Standard Industrial Classification) code. You can:
- Check your SARS eFiling SDL registration
- Contact SARS for your SDL number and SETA assignment
- Contact the SETA directly to verify your registration
Non-Levy Payers (Discretionary Grants Only)
Small businesses and organisations with payrolls below R500,000/year do not pay the levy but may still access some discretionary grants.
Non-Levy Payer Access
- SMMEs: Many SETAs have dedicated SMME discretionary windows
- NPOs and NGOs: Eligible for certain social development programmes
- Community-based organisations: May access internship and learnership grants
- Training providers: Can partner with levy payers or access TVET/CET support
Note: Non-levy payers are not eligible for mandatory grants (20% levy refunds).
How to Apply
WSP/ATR Submission (Mandatory Grants)
Step-by-Step Process
- Register with Your SETA
Ensure you're registered on your SETA's online portal or MIS system.
- Complete Workplace Skills Plan (WSP)
List all planned training activities for the coming year. Include employee details, qualifications needed, and budget estimates.
- Complete Annual Training Report (ATR)
Report on training completed in the previous year. Provide proof (certificates, attendance registers, invoices).
- Submit by 30 April Annually
Both WSP and ATR must be submitted by 30 April each year. Late submissions forfeit the mandatory grant.
- SETA Review and Approval
SETA validates your submission. Queries may be raised if information is incomplete.
- Grant Disbursement
Mandatory grants are typically paid July-September. Payment is made directly to your company bank account.
Common Mistakes to Avoid
- Missing the 30 April deadline
- Incomplete employee data (ID numbers, job titles)
- No proof of training completion in ATR
- Incorrect SDL number or company details
Discretionary Grant Application Windows
Overview
Discretionary grants are advertised via open windows. Each SETA sets its own calendar, but most follow a similar pattern:
Typical Annual Calendar
- January-March: Planning and prioritisation
- April-June: First discretionary window opens (often learnership registrations)
- July-September: Second window (internships, bursaries)
- October-December: Final window (small projects, carry-over)
Application Process
- Monitor SETA Website
Subscribe to your SETA's mailing list for window announcements.
- Develop Project Proposal
Align your training project to sector skills priorities (published in the Sector Skills Plan).
- Submit Application
Most SETAs use online portals. Ensure all supporting documents are attached (learner CVs, training provider quotes, etc.).
- Evaluation (60-120 days)
SETA evaluates based on alignment to priorities, project feasibility, B-BBEE compliance, and budget.
- Contracting
If approved, you sign a grant agreement outlining deliverables, timelines, and tranches.
- Implementation and Claims
Commence training and claim tranches as per agreement milestones.
Tips for Success
- Never miss the WSP/ATR deadline: Set calendar reminders for 30 April. This is non-negotiable.
- Keep meticulous records: Save all training certificates, attendance registers, and invoices. You'll need them for ATR and grant claims.
- Use accredited providers only: Training must be delivered by SETA-accredited or QCTO-registered providers to qualify for grants.
- Align to sector priorities: Check your SETA's Sector Skills Plan (SSP) to see which skills are prioritised. Focus discretionary applications here.
- Budget for cash flow gaps: Most discretionary grants are reimbursement-based. You must pay upfront and claim later.
- Engage early: Contact your SETA's client liaison officer or regional office for guidance before applying.
- Partner with training providers: Many accredited providers will help you with applications and compliance in exchange for your business.
- Leverage B-BBEE: SETA-funded training earns Skills Development points on your B-BBEE scorecard. Double benefit!
Key Legislation
- Skills Development Act 97 of 1998 - Establishes SETAs and the National Skills Fund
- Skills Development Levies Act 9 of 1999 - Imposes the 1% levy and defines collection and disbursement
- National Qualifications Framework Act 67 of 2008 - Governs qualifications and quality assurance
- Employment Equity Act 55 of 1998 - Links skills development to equity targets
Next Steps
Ready to Apply?
Browse live SETA funding programmes in FundingOS. Check your readiness before applying to identify any gaps in your documentation.
Need Help With SETA Grants?
Our network of skills development consultants can help you prepare your WSP/ATR submissions, apply for discretionary grants, and maximise your SETA funding.
- Business plan development
- Financial projections
- Funding application support
- Pitch deck preparation