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.
The Learnership programme was developed in South Africa as a modern way to advance apprenticeships to meet the modern demands of the workplace. Learnerships also manage to formalise the learning and workplace experience - which is usually sadly lacking in internships offered by companies.
Another significant benefit of Learnerships over internships is that Learnerships come with a formal pay structure where learners will be paid a monthly stipend, or payment, for the time they are on the Learnership. Also, internships do not have a learning component, while Learnerships are all linked directly to a formal qualification.
How Learnerships Work
- Combination of Theory and Practice: Learnerships involve both classroom-based training and on-the-job experience. This hands-on approach allows learners to apply their theoretical knowledge in a real-world setting.
- Industry-Specific Training: Learnerships are tailored to specific industries and occupations. This ensures that learners acquire the skills that are most relevant to their chosen career path.
- National Qualifications: Upon successful completion of a learnership, learners receive a nationally recognized qualification. This qualification can enhance their employment prospects and career progression.
Learnerships are structured training programs that combine practical work experience with theoretical learning. In South Africa, learnerships are a popular pathway to employment, particularly for young people and those seeking to upskill.