INTERSHIP MIN STIPEND


This topic contains 1 reply, has 9 voices, and was last updated by  Gill Connellan 2 years, 9 months ago.

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  • #18509

    Adel Griesel
    Participant

    Good Evening all, I need clarity please. What is the min stipend for an internship? learnerships is R1500.00 however, an organisation is advising us R3500 min for an internship. there is a difference between the two stipends. Can the experts here please advise.

    Thanks

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  • #18524

    Gill Connellan
    Participant

    I am not aware of any regulation or legislation governing stipends for internships.  However, there is legislation governing stipends for learnerships.  The amount allocated for stipends on learnerships is determined at a minimum by the NQF level of the qualification.  

    In many cases, the SETA funding model directs or guides what the learnership or internship stipend should be, so this could vary from SETA to SETA as long as the stipend determination in the case of learnerships is not below the legislated minimum threshold.

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  • #18523

    Claudia Nicholl
    Participant

    Good question. We used to pay R 4000, but have increased it to R 5000 / month (NQF5). Most learners have transport costs, have to pay for a room, because their actual home is far away and have to pay for food.

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  • #18522

    Siboniso Nxumalo
    Participant

    Your relevant SETA should provide you with guidelines on this. As Gill Connellan has alluded, the minimum stipend for Internship/Learneships varies from SETA to SETA. For example in INSETA, Interns with matric plus qualification get up to 4 500 and Interns with a degree get up to 6 500. The descrition is on the company to top it up.

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  • #18521

    Jeniffer Maako
    Participant

    hi, the set stipend as per seta’s are normally at R1 500 and R 3 500. But some good companies normally tops-up the stipend so that at least a learner can get some money to cover for other expenses ..Claudia that’s good for your company to do that. Remember some learners travel form far to get to the work place or the training provider so please let’s meet then half way at least. Even if it is just to offer them lunch so they have one thing less to worry about. it is hectic out there…That’s why most of the learnerships have a lot of drop-outs cause they realise that they need to get the qualification but the stipend is too little and then its hard for them to continue with the programme..

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  • #18520

    Lynel Farrell
    Keymaster

    Claudia, that is wonderful.  I wish more companies will look into the learner’s expenses, which clearly needs attention.  Companies that care about their learners, normally look into the expenses of the learner, transport costs and where they are located.  Your company gets a High ^5 from me, well done!!!!!

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  • #18519

    Lynel Farrell
    Keymaster

    Nicely said Siboniso, indeed.  We hope that companies will top up for the learners.  The more you give, the more you will get in return.  Learners appreciate when you look after them and in turn, they look after you!

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  • #18518

    Lynel Farrell
    Keymaster

    Agree Jeniffer.  I have seen where learners on Learnerships get R1500, but their transport costs for the month is R1800.  Sad to see that these learners are so hungry for education, that they will work on weekends to make up for the additional R300 that they require to continue.  How far does R1500 take you?  This is reality.

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  • #18517

    Claudia Nicholl
    Participant

    Hi Lynn. Companies should also know that they can reduce their tax by R 40 000 per year in the year the learner starts and in the year the learner finishes (this is for learnerships). Also, if a learner is under 28 years of age, the company can reduce the PAYE with ETI on a monthly basis and if one is registered with a SETA and hands in the Workskills Plan and Report, the company can claim from the Pivotal Grants. Obviously it involves some documentation and rules, but ultimately the cost of a Stipend is not that great.

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  • #18516

    Lynel Farrell
    Keymaster

    Agree, companies need to be educated, once this is done, they might open up their workplaces more…… but then again, I doubt that will happen.  It is the SDFs that need to advise management of their tax breaks, but maybe they just don’t care.

    It is also important to note, that drop-outs have a huge effect on both Employer and the Provider, so the harder they make it for the learner the higher the possibility of drop-outs remain.  A reality once again that is not given the attention it needs.

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  • #18515

    Schalk Bruwer
    Participant

    Wow!
    Is this a R40K reduction in tax or taxable income?

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  • #18514

    Claudia Nicholl
    Participant

    Calculated at the end of the financial year and taken into consideration when having to pay tax to SARS (our auditors do it for us :-))

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  • #18513

    Xolile Hans
    Participant

    Hi Adel, the amount for an internship depends on the seta concerned. Some setas like TETA, HWSETA pay R5000.00 a month for an internship because those interns are to be assisted with experiential learning by the relevant workplaces. That’s what we were given to pay our interns.

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  • #18512

    sylvia hammond
    Keymaster

    The central issue is whether the internship is being funded by discretionary grant monies from a SETA. If the company is just paying it out themselves, then there is no restriction. (Although the minimum way might well change this.)

    Another SETA example is Foodbev, who are also R5 000 per month – R60, 000 per year for the Work Experience interns completing their Food Tech Diploma.  Companies cannot pay less than the SETA funding but can definitely pay more.

    Personally I have a problem with the terminology. To my mind they are doing In-service training. An intern is someone who has completed the qualification and is looking for work experience post-qualification. 

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  • #18511

    Lynel Farrell
    Keymaster

    Well said Sylvia!  I couldn’t agree with you more.  Just by looking at the cost of transport alone, makes one think of how these learners cope.  The determination of these learners are incredible.

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  • #18510

    Adel Griesel
    Participant

    Hi ladies, thanks for your input. The reason for this question is to ensure that the NGO get the correct funding via a 3rd provider – now a days, training providers are really not doing what they need to do and see every corner to make money out of this opportunity and go for numbers and not for the real purpose – to educate learners.

    I work for 6 corporates, manage 4 learnerships, headcount 180 excluding one visual disabled learnership of 10 unemployed learners. The grants for unemployed by SETA is R1500 however, all of the companies are paying their learners R6000 and they get free meals during training, we’ve allocated them at partners etc. For corporates to implement internships, learnerships mainly is to get good BEE points however, the ones I work with, absorb most of the learners or recruit them with partners nationwide. My question was based on a NGO who was approached by a provider but insisted to get their own funding. I need to bounce this off, they claimed that there is an graduate / internship stipend. I’ve been an ETDP Practitioner for 10 Years and do not take note of this jargon and work intense with 8 SETA’s – I needed to make sure before I respond.

    Again thank you – i appreciate your input.

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