The Skills Development Levies Act (No 9 of 1999) (SDLA) established a compulsory levy scheme for the purpose of funding education and training as envisaged in the Skills Development Act (No 97 of 1998) (SDA). The levy became payable with effect from 1 April 2000. The Department of Higher Education and Training (DHET) in conjunction with the various SETAs, is responsible for administering the Act, while the South African Revenue Service (SARS) is responsible for the collection of levies.
Employers who are liable for payment of the Skills Development Levy (SDL) to SARS, have to nominate the SETA related to their core business upon registration. SDL is paid monthly to SARS together with PAYE and UIF contributions, and SARS then allocates this to the relevant SETA. Any employer exempt from SDL payment can apply for registration as a Services SETA non-levy paying member, if its core business relates to industries that fall under Services SETA.