How are learnerships financed

Under the Skills Development Act, Setas have an obligation to disburse grants. Currently, one Seta provides grants of around R50.00 per credit (R6000.00 per learnership) with an additional R4000.00 grant upon successful completion of the learnership.

Other Setas have slightly different ways of funding their learnerships. These grants are paid to employers.
Employers currently receive a further incentive to implement learnerships via tax relief for each learnership agreement entered. In terms of Act 30 of 2002, by entering a learnership agreement with an employee, an employer may deduct 70% of annual wages paid to the leaner up to a maximum of R17500.00 from their Tax.
By entering a learnership agreement with an unemployed person, employers may deduct 100% of the learnership allowance paid to the learner up to a maximum of R25000.00.