‘Don’t lose out on your discretionary claim benefits’

Any industry body intending to set up its own training arm would do well to establish its academic curricula in close consultation with the Transport Sector Education and Training Authority (Teta), according to Gwen Gerber of Gerber Shipping – who recommended the Institute of Chartered Shipbrokers (ICS) as a good example to follow. “The ICS is embracing change, and moving into the area of educational redress by providing skills training to South Africans, she told FTW. Gerber expressed her concern at the fact that there seemed to be little understanding of how the contributions of companies to the skills development fund (SDF) works – and how to claim from this fund. “All employers who are paying pay as you earn (PAYE) tax are obliged to contribute 1% of their total wage bill to this fund,” she explained, “and they are entitled to claim 70% of this amount back for educating their current employees under the ‘mandatory claims’ provision. “However, since many employers are not claiming – or are not claiming all they are allowed – the balance of the 70% available in the fund which MUST be paid out on an annual basis, is available for payment under the ‘discretionary claims’ provision.” There’s benefit in this for those with a focus on training. It basically means that those companies that are not claiming back their whole entitlement are, in fact, financing their competition to grow more effective through training. “When an employer does not claim all, or at all, from the total 1% of their wage bill, this gives a direct benefit to the competition,” Gerber added. “By not investing in the knowledge and skills of employees, companies are weakening in a very competitive marketplace – especially in these tough economic times. “This may mean that they have to source more skilled people later on, at a much higher cost.” The ICS, meantime, urged companies to make full use of their entitlement from the SDF by making sure that their skills development facilitators submit workplace skills plans that include accredited courses from accredited providers.