How Career Training Is Funded in South Africa

01

The skills development levy

Many employers in South Africa are required to pay a skills development levy, a percentage of their payroll, into the national skills development system. This levy is channelled through SETAs and is intended to fund training within the relevant sector, including grants back to employers who submit workplace skills plans and training reports. This system is one of the reasons learnerships and workplace training are often available at reduced or no direct cost to the learner, since they are partly funded through this levy mechanism rather than paid for entirely out of pocket.

02

Learnerships and their funding structure

A learnership combines structured learning with workplace experience and usually involves an agreement between the learner, the employer and a training provider. Because learnerships are linked to SETA funding streams, many are offered with a stipend paid to the learner during the programme, rather than requiring the learner to pay fees. The exact arrangement depends on the specific SETA, the employer and the learnership agreement, so it is worth asking directly how a particular learnership is funded and what, if anything, the learner is expected to contribute.

03

Bursaries and scholarships

Bursaries are offered by a range of organisations, including SETAs, government departments, professional bodies and private companies, usually tied to a specific field of study. Some bursaries are linked to an obligation to work for the funding organisation for a period after completing the qualification, while others carry no such condition. Reading the terms of a bursary agreement carefully before accepting it is important, since conditions can affect career choices for several years afterwards.

04

Public funding for further education

The National Student Financial Aid Scheme, known as NSFAS, provides funding support for eligible students studying at public universities and TVET colleges, covering registered programmes rather than private short courses. Because NSFAS funding is specifically tied to public institutions and particular types of programmes, it is worth checking directly with the institution in question whether a specific programme qualifies and what the current application process involves.

05

Employer sponsored training

Many employers fund training directly for existing staff, either informally or as part of a structured workplace skills plan linked to SETA grant funding. This can include short courses, formal qualifications relevant to the employee's role, or support towards a professional designation. Employees interested in this option typically need to raise it directly with their employer or human resources department, since availability and criteria vary widely between organisations.

06

Self funded training

Not all training is subsidised, and many short courses and private college programmes are paid for directly by the learner. When self funding a course, it is worth weighing the cost against the likely outcome, considering factors such as whether the qualification is registered on the NQF, whether it is recognised in the relevant industry, and whether a payment plan or instalment option is available through the provider.

07

Practical steps before committing to a course

• Ask whether the course is linked to any SETA grant, learnership agreement or bursary scheme.
• Check directly with public institutions whether a programme is eligible for NSFAS or other government funding.
• Clarify any conditions attached to a bursary or sponsorship before signing an agreement.
• Compare the total cost of self funded training against the qualification's recognition and relevance to the intended career path.
• Keep records of all funding agreements, since these may affect future study or employment obligations.