• Posted on: 17 February 2020
  • By: admin

Workplace Skills Plan (WSP) is a training plan that an organisation plans to implement for the current year. Annual Training report (ATR)reflects the training for the past year.

Skills Development is a priority element on B-BBEE Scorecard and measured entities must achieve 40% of the Skills Development points to prevent dropping a Level. You can spend on Skills Development but if you do not have a Workplace Skills Plan (WSP) and Annual Training Report (ATR) report no points will be awarded under the Skills Development element.

Skills development levy paying companies are encouraged to submit a Workplace Skills Plan (WSP) and Annual Training Report (ATR) in order to qualify for Mandatory and Discretionary Grants. Mandatory grant is a grant payable to levy paying companies upon submission and approval of a Workplace Skills Plan (WSP) and Annual Training Report (ATR) during each year.

Skills Development Circular 1 of 2020 issued by the Department of Higher Education and Training states that there is no specific percentage that SETAs should pay as Mandatory grant. The Department of Higher Education and Training in the circular, advised that it is now at the discretion of SETAs to decide what percentage of the levies would be paid back to employers as a Mandatory grant.

Mandatory grant is no longer pegged at 20% of the levies paid because there was a legal action after Minister of Higher Education and Training had reduced Mandatory grant refund from 50% to 20%. BUSA then challenged that action in court and the Labour Appeal Court ruled in favour of Business Unity South Africa (BUSA) on the 16th of 0ctober 2019 and set aside 20% Mandatory grant refund.

Discretionary grant is allocated at the discretion of SETA in support of the implementation of SETA sector skills plan and discretionary grant policy as determined by SETA Accounting Authority. Successful discretionary grants applicants will be entitled to 49.5% of the total levies paid. PIVOTAL plan and PIVOTAL report are to be submitted to obtain discretionary funding. These reports are part of the WSP and ATR reports - the only difference is that on PIVOTAL reports you will be reporting on PIVOTAL programmes. Please note discretionary grant refund was not affected by the 16th of October 2019 mandatory grant case ruling.

To benefit on the above mentioned please do contact us so that we can assist you with submitting your WSP and ATR reports before the deadline 30th of April 2020.