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Skills Development Act, 1998 (Act No. 97 of 1998)


Sector Education and Training Authorities (SETAs) Grant Regulations

2. Limitation on administration costs of a SETA


(1) In terms of section 14(3)(b) as read with sections 14(3A)(a) and 14(3B) of the Act, a SETA may not use more than 10.5% of the total levies paid by the employer as allocated in the Act received in any year to pay for its administration costs in respect of that financial year.


(2) In addition to sub-regulation (1), a SETA may use the contributions received from public service employers in the national or provincial spheres of government as contemplated in section 30 of the Act, and relevant national and provincial public entities as contemplated in section 30A of the Act for its administration costs.


(3) The Minister may grant written approval authorising a SETA to use an amount not contemplated by sub-regulations (1) and (2) for its administration costs, if the Minister is satisfied that such expenditure is necessary to enable the SETA to continue performing its functions in terms of the Act.


(4) From 1 April 2013, a SETA will transfer as part of its administration costs as contemplated in sub-regulation (1) and approved in the annual SETA strategic plan, an amount that does not exceed 0.5% of the total levy paid by the employer to the QCTO for quality assurance functions as contemplated in section 26H of the Act, and the actual quantum of funds to be transferred will be determined by the Minister by 31 July of each year.