respect of qualifying ‘registered learnership agreement'(s) entered into between the employer. and employee. The allowance is intended as an incentive for employers to train employees in. a regulated environment in order to encourage skills development and job creation.

How is learnership allowance calculated?

For learnership agreements with a duration of more than 24 months, the completion allowance is calculated as applicable allowance multiplied by the number of 12-month periods during which the learnership agreement was in place.

What is a IT180?

(An IT180 is a form which the employer needs to complete for each learnership agreement in respect of which he or she has claimed a Section 12H allowance in the company’s tax return.)

When can you claim ETI?

The incentive amount differs based on the salary paid to each qualifying employee and whether the qualifying employee was employed after the inception of the ETI programme on 1 October 2013. ETI may only be claimed for a total of 24 qualifying months.

What is a Learnership?

A learnership is a work based learning programme that leads to an NQF registered qualification. Learnerships are directly related to an occupation or field of work, for example, electrical engineering, hairdressing or project management. Learnerships are managed by Sector Education and Training Authorities (SETAs).

Is Seta income taxable?

Mandatory Grants paid by the Seta to applicant companies are subject to tax. Discretionary Grants paid by the Seta to applicant firms are subject to tax.

What is the minimum wage for ETI?

An employer claims the ETI for an employee who qualifies and earns less than the minimum wage (or less than R2 000 where a minimum wage is not applicable).

Is ETI income taxable?

The ETI is not taxable and it doesn’t have an impact on other allowances such as the Learnerships’Allowance. Perhaps its most alluring aspect is that the ETI can result in a physical cash refund or reimbursement to a business.

Who qualifies for learnership?

Learnerships are available for young people who have completed school, college or learning at other training institutions. You must be older than 16 and younger than 35 to be eligible for a learnership.

When does section 12h learnership allowance come into effect?

The amendments to Section 12H Learnership Allowance are effective from 1 October 2016 and applicable to all learnership agreements (an agreement registered with SETA (Skills Education Training Authorities) ) entered into on or after that date but before 1 April 2022.

What is the tax allowance for registered learnership?

The employer can claim a tax allowance of R30,000 (R50,000 for disability) per year for each registered learnership agreement it has between itself and an employee. The employer can claim a R30,000 “completion allowance” (R50,000 for disability) for each learner that completes their learnership during the year.

What is the completion allowance for a learnership agreement?

For learnership agreements of less than 24 months, the completion allowance equals one full year’s annual allowance. For learnership agreements of 24 months or more it is multiplied by the number of completed years service.

How to take advantage of learnership allowances in India?

This allowance was implemented to incentivise employers to train their staff in order to encourage skills development and job creation. To take advantage of this benefit, you must register the learnership agreement with your SETA (Skills Education Training Authorities) and complete an IT180 declaration form and submit it to SARS.