Great News! The tax incentives for learnerships have been extended for a further 5 years! Print
October 2011

Tax Incentives ImageThose of you already reaping the many benefits of learnerships will be even more pleased to hear the latest good news - the deadline for tax incentives has been extended for another 5 years until 1 October 2016. For those of you that do not yet know the fantastic benefits of learnerships read further to see what you are missing out on.

Learnerships provide a route for learners to obtain an occupational or professional NQF Qualification with a strong emphasis on workplace experience and hold several benefits for both employers and employees, namely:

Learners benefit through:

  • No loss of income that formal full time studying would cost
  • Better career prospects as learnerships are related to jobs and occupations
  • A launch pad for future learning opportunities
  • Obtaining a formal qualification while gaining relevant workplace experience

Employers benefit through:

  • Not having employees being away from the office for long periods of time
  • Learnerships have work-relevant features that means that employees are equipped to “hit the ground running” when they arrive in the workplace

A learnership will ultimately lead to a full qualification registered on the National Qualifications Framework (NQF) and takes form as a formal contract between the employer, learner and training provider. One of the most unique features of learnerships is that it includes both formal learning in the classroom and supervised, structured, experiential learning in the workplace which is normally done over a period of 12 months depending on the qualification. At the end of the learnership there is a formal assessment of the learner’s achievements.

Challenge Explanation
Time “Training takes my people away from doing their work?”
Learnerships requires on-the-job training so productiv­ity is not impacted as much as with traditional training methods
Money “Training costs my business too much”
Learnerships carry tax incentives and grants to make them more financially attractive.
Your business can improve its competitiveness by earning additional points on the BEE scorecard that are reserved for learnership training
Relevance “Training is just theory - my people need real skills”
Learnerships are practical and can only be registered if they relate to existing skills needs in an economic sector.
Mobility “Training is a dead-end game: I’ve done plenty of courses but it goes no-where!”
Learnerships are plugged into the NQF so that they give access to further learning and are nationally recognised.

The National Skills Development Handbook 2010/2011, Rainbow SA

What you need to know about Learnership Tax Incentives:

If your company is facing one of the challenges below we advise you to immediately consider enrolling your staff for a learnership.

Learnership allowance rules for years of assessment ending on or after 01 January 2010 (Section 12H of Income Tax Act).

2 Levels of Learnership Allowances:

  • R 30 000 commencement AND successful completion allowances for learnerships
  • R 50 000 commencement AND successful completion allowances for learners with disabilities

Specifications / Stipulations:

  • Learners must be registered for learnerships linked to the employer’s trade
  • If the learner leaves during the year, the allowance is apportioned for part of the year – for full months
  • When a learner has successfully completed a learnership, the employer can claim an allowance of R 30 000 for each completed 12 months of the learnership

SETA Learnership Grants:

Employers can apply for learnership grants from the SETA.

Certain qualifying criteria apply as it relates to:

  • Employment Equity
  • Compliance to Skills Development Legislation

Grant amounts need to be confirmed with the SETA.

Compuscan Academy offers a range of learnerships that could greatly benefit both your company and your staff. If you are interested in also reaping the many benefits that learnerships hold then consider sending your staff on one of the following:

Please visit our website regularly for updates on learnerships.

Should you require more information on our range of learnerships, please do not hesitate to contact us on 021 888 6000 or email   This e-mail address is being protected from spambots. You need JavaScript enabled to view it .You can also visit our website at www.compuscanacademy.co.za