1. Manufacturing, Engineering and Related Services SETA
MANDATORY & DISCRETIONARY GRANT ROAD SHOW
LUZETTE JOSEPH – SENIOR MANAGER: ADMINISTRATION
SHERYL PRETORIUS – SENIOR MANAGER: CLIENT SERVICES

3. EDUCATION AND TRAINING 100% 18% 1% of total payroll SARS 2%
DEPARTMENT OF HIGHER
EDUCATION AND TRAINING
100%
18%
1% of total payroll
SARS 2%
80%
EMPLOYER
National Skills Fund
10.5%
Maximum of 0.5% to QCTO
Administration
SETA’S
Other Legal Entities
Maximum of 20% of the discretionary will be allocated to non pivotal programmes
80% of the discretionary will be allocated to pivotal programmes
MANDATORY: WSP & ATR: 20%
DISCRETIONARY GRANTS AND UNCLAIMED GRANTS 49.5%

4. ACCESS REGISTRATION PROCESS
Access the SMS system via the merSETA website ( or directly
using the following URL -
All signatories must register on-line for access.
Follow the steps in the submission guide to start with the registration process. – available on the merSETA website –

5. FUNDING WINDOW REQUIREMENTS
MANDATORY/PIVOTAL APPLICATION WINDOW
1 February – 30 April 2017
DISCRETIONARY GRANT WINDOW
1 February– 30 April 2017
PIVOTAL PROGRAMMES
NON PIVOTAL PROGRAMMES
Large & medium sized companies = submit PIVOTAL plan during mandatory grant application
Class of 2017 Matriculants
Small and other legal entities = apply during discretionary grant window
OFO Codes - Version 2015 throughout the application.
Large & medium sized companies = submit during discretionary grant window
Banking details changed = submit original banking details to merSETA office.
Upload = Signed minutes of Training Committee meeting

6. MANDATORY/PIVOTAL APPLICATION WINDOW DISCRETIONARY GRANT WINDOW
1 February – 30 April 2017
DISCRETIONARY GRANT WINDOW
1 February– 30 April 2017
Upload = Deviation motivation + Signed minutes of Training Committee meeting + sign-off page + Non NQF aligned training motivation
Recognition agreement = labour/union SDF + SDF sign-off
50 or more employees but no recognition agreement = employee SDF + SDF sign-off

7. MANDATORY/PIVOTAL APPLICATION WINDOW DISCRETIONARY GRANT WINDOW
1 February – 30 April 2017
DISCRETIONARY GRANT WINDOW
1 February– 30 April 2017
SDF will be prompted prior to sign-off where outstanding information is required.
Upload sign-off page of all signatories where parties are not available to sign-off electronically.

8. REPORTING PERIOD Annual Training Report (ATR) & PIVOTAL Report
1 January – 31 December 2016; and
Workplace Skills Plan – WSP & PIVOTAL Plan
1 January – 31 December 2017

9. STAKEHOLDER FEEDBACK & IMPROVEMENTS
STAKEHOLDER CHALLENGE/SUGGESTIONS
CAUSES
SOLUTIONS/IMPROVEMENT
After pressing enter on the Training with Other Seta's form, it would not save the info or go to the next page
The system has a timeout function which will not allow changes after a certain amount of non activity.
Log out and log back in.
Blank screen once logged in
Compatibility view settings have not been activated.
Internet setting document available on merSETA website.
Request for duplicate information already supplied
Request for information in two areas to ensure validating the information captured e.g. Recognition agreement
All duplication has been eliminated and streamlined.

10. STAKEHOLDER FEEDBACK & IMPROVEMENTS SOLUTIONS/IMPROVEMENT
CHALLENGE
SOLUTIONS/IMPROVEMENT
No space for Labour/employee SDF information
merSETA would request clarification of sign off on manual submissions where the information was not included.
Provision has been made for the Labour/employee SDF to input their details. This will eliminate query for clarification.
The document uploads were failing.
Either the incorrect format was used or the file exceeded 5Mb.
Split a large file and upload separately.
Only use pdf, word, jpg, tiff or png formats.

11. STAKEHOLDER FEEDBACK & IMPROVEMENTS SOLUTIONS/IMPROVEMENT
CHALLENGE
SOLUTIONS/IMPROVEMENT
When an SDF was working on the weekends, especially near submission due date, the system would throw them out.
Many companies wait until the deadline before they start the submission process which results in higher bandwidth usage.
merSETA monitors the bandwidth usage and instructs the provider to increase the capacity.
Start the process early to avoid the rush.
Excel upload facility required.
The current SMS system does not have the capacity to deal with this.
Previous experiences of implementing the excel upload was unsuccessful.
merSETA will explore the possibility to build it into the new system.

12. STAKEHOLDER FEEDBACK & IMPROVEMENTS SOLUTIONS/IMPROVEMENT
CHALLENGE
SOLUTIONS/IMPROVEMENT
Data exported from the previous year came through scrambled.
Due to different versions of OFO codes being used, the system would scramble the information when importing it to OFO version 2015
The OFO code version did not change from the previous submission.
The save button on the skills requirement page was greyed out and clients struggled to complete the section.
The SDF is required to capture both the previous and current year information whether vacancies existed or are expected.

13. STAKEHOLDER FEEDBACK & IMPROVEMENTS SOLUTIONS/IMPROVEMENT
CHALLENGE
SOLUTIONS/IMPROVEMENT
Post pressing signoff by the SDF or Employee Rep they could not return to that page to print it out for uploading or scanning to H/O.
The functionality exists on the mandatory grant screen and the SDF is required to click on print and paste the information into a word document for further usage.
On the organisation info page the Municipality tab was greyed out.
Although it seems greyed out, the SDF is required to make use of the search functionality and select the municipality

14. SYSTEM CHANGES/ADDITIONS
FORM
CHANGE/ADDITIONS
Workplace Skills Plan (WSP)
Confirmation whether training is in line with the organisation’s employment Equity plan is required.
Confirmation of willingness to enter into a co-funding partnership.
Non NQF aligned training
Where training is not NQF aligned, the organisation is required to upload a motivation capturing the reasons therefore.
Document Upload tab
The current financial year must be selected to ensure that the uploaded documents are relevant to the current year.

15. REASONS FOR NON APPROVALS & CORRECTIVE MEASURES
REASON FOR NON APPROVAL OR QUERY
CORRECTIVE MEASURES
No employee SDF (representative) sign-off
Companies employing 50 or more staff who do not have a signed recognition agreement with labour, must ensure that an employee SDF (representative) who is a member of the training committee signs off. This can be done electronically or manually where the sign-off page is printed, signed and uploaded. Please ensure that the person’s name, surname and who they represent is written on the manual sign-off page. The person’s details must also appear on the training committee tab.

16. REASON FOR NON APPROVAL OR QUERY
CORRECTIVE MEASURES
Clarification of sign-off
Ensure that when the employee or labour SDF signs off, that the name, surname appears. Clearly state whether the person is an employee or labour SDF. Ensure that the person’s details appear on the Training Committee tab
Deviation – less than 40% from previous WSP
Where the company has specified that they will train 100 employees in the WSP and when the ATR is submitted, they have only trained 39 employees, it clearly means that they have deviated more than 40%. A motivation with details explaining why the full WSP was not implemented is stated. All training must be reported on.

17. REASON FOR NON APPROVAL OR QUERY
CORRECTIVE MEASURES
No labour SDF (representative) sign-off
Companies who have a signed recognition agreement with labour must ensure that a labour SDF (representative) who is a member of the training committee signs off. This can be done electronically or manually where the sign-off page is printed, signed and uploaded. Please ensure that the person’s name, surname and who they represent is written on the manual sign-off page. The person’s details must also appear on the training committee tab.

18. REASON FOR NON APPROVAL OR QUERY
CORRECTIVE MEASURES
No training completed
Where no training has been implemented, the grant will not be approved, irrespective whether reasons are supplied.
Banking details
The SDF must confirm whether the banking details are correct and only if changed since the last submission is the SDF required to submit the original banking details as per the requirements to the merSETA regional office.
***Once received, merSETA will request an confirmation from the authorised person within the company as an additional risk eliminator.

19. REASON FOR NON APPROVAL OR QUERY
CORRECTIVE MEASURES
Disputes
Where a dispute arises the SDF must upload the details of the dispute against the sign-off page on the document upload page and must ensure that he/she submits the grant application electronically.
TIPS TO AVOID DISPUTES:
Involve the labour representatives from the commencement of the skills needs analysis and ensure that labour representatives form part of the training committee.
Separate training related issues from bargaining issues,
Training Committee members must have a clear understanding of their existing policies relating to training and employment equity.
When you notice that there is a possibility of a dispute, involve the merSETA Client Liaison Office in an attempt to resolve the matter amongst the training committee members.

20. APPROVAL PROCESS
The only outstanding information that will be followed up after submission is:
Banking details
Clarification of sign-off
Outstanding labour or employee SDF signatories (whichever is applicable)
Proof of inter-Seta transfer approval prior to mandatory grant submission deadline.
Submissions of deviation.
This information must be submitted by no later than 15 July and no appeals will be accepted as the unclaimed mandatory grant funds will be transferred to the discretionary grant funds.
The approval process must be concluded by no later than 31 July of each year.
Unclaimed mandatory grant funds must be transferred to discretionary grants by 15 August of each year.

21. PIVOTAL PLAN (Discretionary grant)
Large and Medium companies:
Must submit their mandatory grant application and complete the PIVOTAL plan.
Small and other legal entities operating in our sector:- PIVOTAL and Non-PIVOTAL programmes:
Must submit during the discretionary grant funding window.
Large and Medium companies: - Non-PIVOTAL programmes
Must submit via the discretionary grant funding window opening on Wednesday, 1 February 2017 until Sunday, 30 April 2017
Preference will be given to priority skills identified and where SIPs
coincide with these skills.

22. DISCRETIONARY GRANT DISTRIBUTION OF 49,5%
Pivotal Programmes (80%)
Minimum of the discretionary grant budget
70% of DG to be ring fenced for levy paying employers that have submitted Pivotal Plan through the Mandatory Grant Window
DG Awards to commence from 1 September
20% of DG to be ring fenced for SME levy paying and merSETA non-levy paying companies
Window to open on the
1 February and close 30 April
DG Awards to commence on 1 September
10% of DG to be ring fenced for other legal entity or public providers
Non Pivotal Programmes
(20%) maximum of the discretionary grant budget
Window to open on the 1 February and Close 30 April

23. DISCRETIONARY GRANTS – AWARDING CRITERIA
Submissions for large and medium companies occur during the mandatory grant application process.
Small merSETA levy paying companies who intending to apply for consideration for discretionary grants for the training of Matriculants “Class of 2017”, must apply via this window.
Legal entities are defined as:
Public and Private education and training institutions
An employer within the jurisdiction of the merSETA who is not required to pay Levies.
Community based organisations (CBO’s), Co-operatives .

24. DISCRETIONARY GRANTS – AWARDING CRITERIA
Trade Unions in the merSETA Sector, for the benefit of educating and developing their members on Skills Development-related programmes which forms part of their duties as shop stewards and which is beneficial to the merSETA Sector.
Disputes - The Regional office will carry out a verification process on Mandatory Grant applications and where insufficient consultation with labour/employee representatives has occurred, the mandatory and discretionary grant will not be approved.

25. DISCRETIONARY GRANTS – AWARDING CRITERIA
Verification on workplace readiness will be carried out by the regional offices.
Preference will be given to the priority skills identified in the merSETA Annual Performance Plan and SSP.
All claims must be in respect of learners who are South African citizen and who are in possession of a valid South African Identity document.
All withdrawals will be investigated to determine reasons for the withdrawal and how it could affect future discretionary grant awards.

26. DISCRETIONARY GRANTS – AWARDING CRITERIA
Further grant awards will depend on progression on delivery of previous grant awards,
as follows:
DISCRETIONARY GRANT WINDOW
SATISFACTORY PROGRESSION
DG5
Closed out with exception of approved extensions where
apprentices await trade testing.
Year 14 and
agreements for
the “Class of 2013
Matriculants”
3rd tranche payments of all learning interventions has been paid.
All short learning interventions has closed out.

27. DISCRETIONARY GRANT WINDOW SATISFACTORY PROGRESSION
Year 15 and
agreements for
the “Class of
2014
Matriculants”
2nd tranche payment of all learning interventions has been paid
All learning interventions to be closed out, except for learners on
apprenticeships and NQF Level 2 to 4, bursaries and internships
Year 16 and
agreements for the “Class of 2015
First and second tranche payments for all learning interventions
has been paid.

28. DISCRETIONARY GRANTS AWARDS
Awarding of discretionary grants is at the sole discretion of the merSETA based on the approval of the Accounting Authority;
Award is given via an MoA to the stakeholder where the stakeholder takes full responsibility for the learner;
Approved awards will be aligned to the 49,5% levies received by an organisation;
Appeals regarding an award of a grant must be submitted in writing detailing the reasons for the appeal, within 14 days of receipt of the award.

29. DISCRETIONARY GRANTS AND BBBEE
Spend on Skills Development has been increased from 3% to 6% of the payroll

30. EMPLOYER CATEGORIES CATEGORY CRITERIA COMMENT PLATINUM
Top Training Clients
Must be merSETA levy-paying companies and up-to -date with levies;
Have received Mandatory Grants payments for last three years;
Have an average pass rate of 80% in implementation of learning programmes including apprenticeships according to the companies training track record;
An active training committee must be in place if the employer has 50 or more employees and where there is a recognised trade union or unions, they must form part of the training committee;
Have a progress or placement average of 70%;
Placements will be measured for a three-year period.
Platinum companies get 1 x 49.5% levies contributed and a further 2 x 49.5% on condition that they match and contribute 2 x 49.5% of their fund towards the funding agreement.,
Companies must be encouraged that 2% of learners applied for and enrolled are persons with disability for primary or non-primary focused learning.
Employers awarded 10 or more awards will be encouraged to participate in merSETA’s initiative to develop lecturers, within Public TVET Colleges, by indicating the availability of such workplaces to train such lecturers.

31. CATEGORY CRITERIA COMMENT GOLD
The Gold merSETA levy-paying companies have a training record,. However there are gaps where the employer needs to be developed in order to move to the Platinum Category;
Must be merSETA levy-paying companies and up-to -date with levies;
An active training committee must be in place if the employer has 50 or more employees and where there is a recognised trade union or unions, they must form part of the training committee;
Has participated in the submissions of mandatory grants and these grants have been approved for payment;
Have an average pass rate of 60% of learning programmes implemented;
Have a sound track record of training over a minimum period of two years;
Have a progress or placement average of 60%. Placements will be measured for a three-year period.
Gold companies get 1 x 49.5% levies contributed and a further allocation to a maximum of 0.5 x 49.5% on condition that they match and contribute 0.5 x 49.5% of their fund towards the funding agreement.
These employers to indicate that work -integrated learning or workplace learning for persons with disability can take place for primary or non-primary focused learning.

32. CATEGORY CRITERIA COMMENT SILVER
The Silver Category companies are companies with limited exposure to skills development or have never worked with the merSETA before including non -levy paying companies.
It is important to note that an active training committee must be in place if the employer has 50 or more employees and where there is a recognised trade union or unions, they must form part of the training committee.
10% of the total surplus budget available will be allocated to New Business employers.
Non levy paying companies and levy paying companies where 49.5% is below R in this category will get an allocated grant equivalent to one apprentice and a further grant equivalent to 1 apprentice on condition that they contribute equal grant.

33. CO-FUNDING EXAMPLE WITHOUT CO-FUNDING WITH CO-FUNDING Category
Company levies Contributed
20% to NSF
80% to merSETA
Levies available for Grant purposes after 10.5% Admin and QCTO Allocated
DG Distribution 49.50%
merSETA Funding without Co-funding
Maximum MerSETA Portion on Co-funding (2 x 49.50%)
Company portion on Co-funding (2 x 49.50%)
20% of Mandatory Grant Payment
Maximum Total MerSETA DG Funding
Total of Grants Received %
Platinum
188%
DG Distribution49.50%
MerSETA Funding without Co-funding
Maximum MerSETA Portion on Co-funding (0.5 x 49.50%)
Company portion on Co-funding (0.5 x 49.50%)
Maximum Total MerSETA DG Funding
Gold
105%
Maximum MerSETA Portion on Co-funding
Company portion on Co-funding
Silver
30 000
53 163
24 000
270%

34. SUMMARY
The SMS system will open on 1 February 2017
merSETA regional offices and call centre is available for assistance, upon request
Register your labour and employee SDF’s on the SETA Management System (SMS)
Now – Don’t wait!!!

35. THANK YOU
merSETA