Frequently Asked Questions

What is a learnership?

A Learnership is a work-based education and training programme that is linked to a qualification registered on the National Qualifications Framework (NQF) with the South African Qualifications Authority (SAQA). It consists of both practical and theory. Learnerships are a creation of legislation (section 17 of the Skills Development Act) and is an extremely popular form of accredited training to build both theoretical and practical skills.

How will this learnership benefit me in the future?

1. You may have better employment opportunities after completing a learnership.
2. You have a fixed-term employment contract for the duration of the learnership (usually 12 months).
3. Learnerships improve on-the-job performance so you are able to do things relevant to the role.
4. Upon completion, you receive a nationally-recognised qualification that is relevant to the sector.
5. You earn a monthly learner allowance for the duration of the learnership.

What are the tax incentives with regards to running a learnership?

The tax incentive for learnership agreements was introduced in the form of an allowance which may be deducted from the employer’s income when the employer’s taxable income is determined. This allowance effectively covers the cost of the training with EduPower.

For the 12 full months during any year of assessment:

The quantum of the annual allowance is equal to –

  • R40 000 for a learner holding an NQF-level qualification from 1 to 6; or
  • R20 000 for a learner holding an NQF-level qualification from 7 to 10.

If the learner is a person with a “disability” as defined in section 6B(1) –

  • R60 000 (R40 000 + R20 000) for a learner holding an NQF-level qualification from 1 to 6; or
  • R50 000 (R20 000 + R30 000) for a learner holding an NQF-level qualification from 7 to 10.

For each period of less than 12 full months during any year of assessment:

The annual allowance is a pro rata portion if the learner is a party to a registered learnership agreement for less than 12 full months during the year of assessment.  Apportionment will therefore apply if the learnership agreement commenced or ended partway through the year of assessment.

The completion allowance:

The completion allowance is granted once-off in addition to the annual allowance and is deductible in the year of assessment in which the learner successfully completes the learnership.  This allowance equal to the annual allowance in quantum.

 

For a detailed breakdown, see below (Why do Learnerships through EduPower?)

What is BEE?
  • BEE (B-BBEE) is based on legislation (Act 53 of 2003)
  • BEE is an attempt to redress the imbalances created by the apartheid system which excluded the majority black population from mainstream economic participation
  • BEE has several elements that seek to empower black people to become mainstream stakeholders in the local economy
  • BEE is voluntary in terms of participation from a corporate viewpoint but is promoted as part of becoming good corporate citizenry
  • Many corporates will be excluded from transacting with government or its partners if they fail to voluntarily participate in BEE
What do skills have to do with BEE?
  • Skill development is a major element of the B-BBEE scorecard
  • Skills development is seen as a major lever to grow black participation in the economy
  • The current scorecard emphasis is on accredited training and to a lesser degree, non-accredited training
  • Learnerships are a major focus in terms accredited training
  • Microsoft end user (e.g. Excel /Word/PowerPoint) is a popular non-accredited short course
  • The corporate is encouraged to build skill in their own organisation but can also donate to skills development where a learner is trained and hosted elsewhere
Why should companies work with EduPower for their Skills Development?

We understand the requirements of B-BBEE and can therefore offer solutions that meet our client’s specific requirements. We also strive to be as flexible and effective as possible and therefore offer:

  • large onsite hosting capabilities (180 seats)
  • We can travel to client premises as and when needed
  • Our safe hosting environment and conducive programmes cater to learners with disabilities
  • We replace any learners that abscond at no additional cost to our clients to ensure your B-BBEE audit goes to plan and delivers as expected
  • We provide many extra programmes to make the 12 month programme as enriching as possible for the learners – we want them to grow in confidence and enjoy the year with us
  • We actively seek to place all learners into their first full time roles and therefore unlock the five bonus points available for learner absorption for our clients