In today’s competitive business landscape, companies are constantly looking for innovative ways to reduce costs, boost productivity, and contribute meaningfully to social development. One of the most effective yet overlooked strategies for achieving this in South Africa is through Learnerships, which not only develop skills within the workforce but also unlock significant tax rebate opportunities.
What Is a Learnership?
A learnership is a structured learning programme that combines theoretical education with practical workplace experience. It’s registered with a Sector Education and Training Authority (SETA) and leads to a nationally recognised qualification. Learnerships can be undertaken by unemployed youth (18.1) or existing employees (18.2), offering flexibility for businesses of all sizes.
Business Benefits of Implementing Learnerships
1. Access to Tax Rebates and Deductions
The South African Revenue Service (SARS) offers companies tax incentives for participating in registered learnerships. Businesses can claim:
– Up to R40,000 per learner per year (for able-bodied learners)
– Up to R60,000 per learner per year (for learners with disabilities)
These amounts are doubled if the learner successfully completes the programme.
➡️ Example: For one learner with a disability, a company can claim up to R120,000 in tax deductions – R60,000 on registration and another R60,000 on completion.
2. B-BBEE Scorecard Compliance
Learnerships contribute directly to the Skills Development element of the B-BBEE scorecard – a priority element. Successfully completing learnerships helps businesses:
Improve B-BBEE ratings
Enhance competitiveness in tender applications
Attract corporate clients who value transformation and compliance
3. Skills Pipeline & Productivity Gains
Learnerships develop a pipeline of skilled employees who are aligned with your business’s needs. These programmes improve:
Workplace readiness
Employee loyalty
Productivity
Succession planning
By training learners in real-time job functions, you are essentially shaping future-ready employees who understand your business culture and operations.
4. SETA Funding Opportunities
In addition to tax rebates, some SETAs offer discretionary grant funding to employers who implement learnerships. These grants can cover:
Learner stipends
Training provider fees
Assessment and certification costs
5. Promotes Employment & Social Impact
By investing in unemployed youth and individuals with disabilities, your business becomes part of the solution to South Africa’s unemployment crisis. It also boosts your brand image as a socially responsible employer.
What You Need to Get Started
- Partner with an Accredited Training Provider
- Register the Learnership with the relevant SETA
- Sign a Learnership Agreement with each learner
- Claim your tax rebate via SARS with the required documentation (e.g., IT180)
To ensure successful implementation:
Track learner progress – maintain attendance and assessment records.
Pay learner stipends timeously and fairly.
Communicate regularly with your training provider and SETA.
Final Thoughts
Learnerships are not just about compliance – they’re a smart business move. They allow companies to develop internal talent, qualify for generous tax rebates, and enhance B-BBEE levels – all while making a positive impact on South Africa’s economy and communities.
Ready to implement a learnership programme? Let us guide you through the process and ensure you maximise every opportunity available.
Contact us today! Let’s build skills, boost your tax savings, and grow your business!
