Presentation on theme: "LEVY IMPLEMENTATION 27 JANUARY TO 14 FEBRUARY 2014."— Presentation transcript:
LEVY IMPLEMENTATION 27 JANUARY TO 14 FEBRUARY 2014
Presentation Outline Background/Introduction Notice 35: Imposition of the VET Levy Regulations 47 (1) (d): Imposition and Collection of the VET Levy Marketing and Stakeholder Engagement
Background/Introduction VET Act of 2008 makes provision for the imposition of a VET Levy on employers VET Levy framework developed based on studies done Benchmarking of framework carried out Consultations on draft framework carried out Notice 36 (1) gazetted in April 2013 where stakeholders were invited to submitted proposals on the Levy Cabinet approved the implementation of the VET Levy in November 2013 As per the VET Act, a notice (S 35) must published in the Gazette at least 30 days before commencement. Notice 35 and Regulation 47 will be gazetted on the 27 th January ‘14
VET Training Levy - Government Notice Section 35 (1) Payment of the levy will commence 01 st April 2014 The Levy Rate is 1% of Employers Total Annual Payroll Payroll means the total annual remuneration paid or payable by an employer to its employees Remuneration means the total value of all payments in money or in kind made or owing to an employee arising from the employment of that employee as defined in Chapter (1) of the Labour Act of 2007. (Act No. 11 of 2007) Employee means an employee as defined in Chapter (1) of the Labour Act of 2007. (Act No. 11 of 2007)
VET Training Levy - Government Notice Section 35 (1) Levy must be paid on a monthly basis on or before the 20 th day of every month. 01 st Payment will then be on or before the 20 th May 2014 and each month thereafter Levy to be paid directly into the National Training Fund Bank Account by EFT, Cheque, Cash. Every employer must submit a corresponding levy return form to the NTA on a monthly basis or before the 20 th day of every month.
VET Training Levy - Government Notice Section 35 (1): Exemptions the state; regional councils as defined in section 1 of the Regional Councils Act, 1992 (Act No. 22 of 1992); charitable organisations; public and not for gain educational institutions; faith based organisations; whether or not supported wholly or partly by grants from government Institutions and employers can apply to the Minister for consideration for exemption
VET Training Levy - Government Notice Section 35 (1) Employers Must Register and submit the required information within 30 days of the Gazette of this Notice NTA can estimate an employers liability if they fail to submit monthly return or incorrect information Must pay levy on or before the due dates. Non Payment and or Under Payment will be subject to Interest and Penalties.
Regulations Relating to the Use of VET Levies – Section 47 (1) (d): Levy Distribution Company Training 50% Key Priority Training 35% NTA Administration 15%
Company Training 50% Levy Allocation Refund Up to 50% of levy paid based on Evidence of Training Implementation and Actual Costs
Key Priority 35% Allocation To fund and Promote: Government/National Priorities (National HR Plan) Sector Needs (Industry Skills Committee Priorities) Strategic and Scarce Skills
Allocation of up to 15% of Collected Levy To defray expenditure for NTA Collection and Administration Costs.
Regulations Relating to the Use of VET Levies – Section 47 Payment of Company Training Grants; Must be Up to Date with Levy Payments No Interest or Penalties Outstanding Submits to the NTA Evidence of the Implementation of Training Submits Evidence of Actual Costs
Regulations Relating to the Use of VET Levies – Section 47 (1) (d) Definition of “Training” for Levy Refund Purposes: “Training” means training which is related to vocational training provided by a private vocational training provider who is accredited by the Namibia Qualifications Authority or a state owned vocational training centre.
Regulations Relating to the Use of VET Levies – Section 47 Eligible Programmes for Grants Must be Provided by State Owned VTC’s. Private VET Providers must be accredited by NQA. Programmes conducted within the company are “vocational related.” (Refer to List) Companies conducting “in-company” training do not necessarily need to be accredited by NQA or registered with the NTA. They are however encouraged to do so.
Definition of Actual Costs Internal Costs: Training Staff Salaries Training Materials used in the Training Process Cost of Training Equipment for the Training Period Assessment Costs for Training Conducted Certification Costs Overheads related to Training Venue Cost of Other External Supplementary Training Administration Costs Applicable to Training activities
Definition of Actual Costs External Training Costs: Travel Costs to Training Venue Invoiced/Receipted Costs from Service Providers Administration costs applicable to training activities Accommodation Costs related to training
Payment of Company Training Grants: Grants will be Paid on an Annual Basis Employers must make submissions in compliance with the above criteria Submissions to NTA within 30 days after the end of the Financial Year Unclaimed Grants will be transferred to the Key Priority Fund for allocation
Training Evidence Evidence That Training was implemented Training Records Attendance Sheets Invoices/Payments made Certification
Regulations Relating to the Use of VET Levies – Section 47 (1) (d) Key Priority Fund Sources: 35% of levies collected in each financial year. Unclaimed Training Grants. Funds Arising from Non Payment of Grants to Employers who fail to comply with the eligibility criteria. Interest and Penalties Interest earned on levy funds
Regulations Relating to the Use of VET Levies – Section 47 Application for Key Priority Funds. Needs Identified within NDP4 NHRDP ISC Sector Needs and Priorities Government Priorities Request for Submissions NTFC and NTA Board Approval
VET LEVY IMPLEMENTATION LOGISTICS Location of Road shows Team Compositions Availability of Call Centre Planned Media Events
Formal Major Launch of Levy Implementation Government Ministers Regional Directors x 14 Other Government Officials Employer Representative Bodies Social Partners Educationalists. UNAM, POLY: Private. Training Providers.