SETAs, SDL and skills funding.
South Africa's 21 SETAs plan, fund and quality-assure sectoral skills development — recycling the Skills Development Levy back to employers through mandatory grants, discretionary grants and learnership funding. Here's how the system works.
The SETA system at a glance.
21 SETAs, sector-aligned
Each SETA covers a Standard Industrial Classification — Services, MICT, MER, BANK, INS, W&R, TETA, ETDP, HW and 12 others.
Funded by 1% SDL
Employers with payroll above R500,000 pay 1% Skills Development Levy. SARS routes 80% to your SETA and 20% to the National Skills Fund.
Grants back to employers
20% of SDL returns as the Mandatory Grant (via WSP/ATR submission). Up to 49.5% is redistributed as Discretionary Grants for learnerships and priority skills.
Where your 1% Skills Development Levy goes.
- 20% Mandatory Grant — returned to compliant employers who submit an annual Workplace Skills Plan and Annual Training Report.
- 49.5% Discretionary Grants — competitive funding for learnerships, bursaries, apprenticeships and priority skills projects.
- Balance — funds SETA operations, quality assurance and administration.
The NSF funds national priority skills programmes — including bursaries for scarce and critical skills, youth development, rural skills initiatives and cross-sector projects that fall outside individual SETA mandates.
Find your sector authority.
Common questions about SETAs.
What is a SETA?
A SETA (Sector Education and Training Authority) is a statutory body established under the Skills Development Act to plan, fund and quality-assure skills development in a specific sector of the South African economy. There are 21 SETAs covering everything from services and IT to mining, banking and manufacturing.
How many SETAs are there in South Africa?
There are currently 21 SETAs, each aligned to a Standard Industrial Classification. Well-known SETAs include Services SETA (SSETA), MICT SETA, MERSETA, BANKSETA, INSETA, W&RSETA, TETA, ETDP SETA and HWSETA.
How do I apply for SETA learnerships?
SETAs do not employ learners directly. Learnerships are recruited by host employers and accredited training providers who have registered the learnership with the relevant SETA. To find opportunities, watch the vacancies pages of the 21 SETAs, monitor accredited training providers like LearningWorks, and follow career pages of large sector employers.
How do I apply for SETA funding?
SETA funding flows to registered employers and accredited training providers, not to individuals. Employers submit an annual Workplace Skills Plan (WSP) and Annual Training Report (ATR) to qualify for the Mandatory Grant (20% of SDL). Discretionary Grants (up to 49.5% of SDL) fund specific learnerships, bursaries and skills programmes and require project proposals aligned to the SETA's Sector Skills Plan.
What is the Skills Development Levy (SDL)?
The Skills Development Levy is a 1% payroll tax paid by employers with an annual payroll above R500,000. SARS collects the levy and distributes it: 80% to the relevant SETA (which returns it via grants and learnership funding) and 20% to the National Skills Fund. SDL is the primary funding mechanism for South Africa's skills development system.
How is SDL split by a SETA?
Of the 80% each SETA receives: 20% is returned as the Mandatory Grant to compliant employers, up to 49.5% is redistributed as Discretionary Grants for learnerships and priority skills, and the balance funds SETA operations, quality assurance and administration.
How do I know which SETA my company belongs to?
SETA classification is determined by your company's primary Standard Industrial Classification (SIC) code — usually the sector that generates most of your revenue. SARS assigns your SDL contributions to that SETA automatically. You can verify with your payroll provider or by checking your SDL statement.
What is SETA accreditation?
SETA accreditation is the quality-assurance sign-off that authorises a training provider to deliver specific NQF-registered qualifications, skills programmes and learnerships in that SETA's scope. Only SETA-accredited providers can issue statements of results that lead to a recognised qualification.
Are SETAs government?
SETAs are statutory bodies — established by law and funded through SDL — but operate as independent entities under the oversight of the Department of Higher Education and Training (DHET) and the Quality Council for Trades and Occupations (QCTO).