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A simple and affordable illustration
Suppose Company A has 100 employees and a leviable amount of R18 Million. To achieve the maximum score on the Skills Development Scorecard, the following is required.
• R1.08M must be spend on the training of black people to achieve 8 points
• R54 000 must be spend on the training of black disabled employees to achieve 4 points
• Three black employees must be put on learnerships or apprenticeships to achieve 4 points
• Three previously unemployed black people must be put on learnerships or apprenticeships to achieve 4 points
Company A then does the following to realise all targets and achieve a maximum 20 points.
• Recruit 2 previously unemployed learners without disability at R4 000 each (Vat exclusive)
• Recruit 1 previously unemployed learner with a disability at R6 000 (Vat exclusive)
• Pay stipends to all previously unemployed learners of R4 000 per month
• Put five existing employees with average salaries of R150 000 per year along with the 3 previously unemployed learners on a single generic learnership
• Pay the Training Provider R28 947 (Vat exclusive) for the training of each learner
Company A will then be credited with spending R1 139 576, but the real cost to the company will be only 12% of that at R137 535 as illustrated below. (And these calculations exclude any discretionary grants that might be realised through a SETA.)
• The salaries of existing employees is not a new cost to the company
• Employee Incentive Rebates of R1 000 per month applies to previously unemployed learners
• The training fees can be deducted from tax as a justifiable spend
• All learnership participants qualify for a “Learnership commencement allowance” of R30 000. (Double for disabled learners)
• All learnership participants qualify for a “Learnership completion allowance” of R30 000 if they are successful. (Double for disabled learners)
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