SETA (Sector Education and Training Authority)
Also known as: Sector Education and Training Authority.
What is SETA?
A SETA (Sector Education and Training Authority) is a statutory body established under Section 9 of the Skills Development Act 97 of 1998 to promote skills development within a specified economic sector. There are 21 SETAs in South Africa, each funded through a share of the Skills Development Levy.
Drafted and reviewed by
Attorney & Founder, My-Contracts.co.za · Legal Practice Council of South Africa (LPC F17333)
Definition and context
SETAs are the operational backbone of South African skills development. Established under Section 9 of the Skills Development Act 97 of 1998 and re-established by ministerial notice every five years, 21 SETAs cover economic sectors ranging from Banking (BANKSETA) and Services (SSETA) to Mining (MQA), Manufacturing (MERSETA), and Public Service (PSETA). Each SETA is funded through its share of the Skills Development Levy collected under the Skills Development Levies Act 9 of 1999 — 80% of SDL receipts flow to SETAs, with the remaining 20% going to the National Skills Fund.
SETAs perform three core functions. First, they develop and approve Sector Skills Plans that identify sectoral skills needs and training priorities. Second, they register learnerships, apprenticeships, and skills programmes, and quality-assure the qualifications offered by accredited training providers — which is how Section 12H of the Income Tax Act and the B-BBEE Skills Development scorecard points become unlocked. Third, they administer the grant regime: employers who submit Workplace Skills Plans and Annual Training Reports by the statutory deadline become eligible for Mandatory Grants (20% of SDL paid) and for Discretionary Grants allocated at the SETA\'s discretion for strategic training initiatives.
For employers, the practical touchpoints are the Skills Development Facilitator (often an internal HR person or an external consultant) who liaises with the SETA, registers learnerships, and claims grants. A well-structured relationship with the relevant SETA can produce material financial recovery of the SDL spend while supporting a company\'s transformation agenda under the B-BBEE Amended Codes. The Skills Development Policy template on My-Contracts references the employer\'s SETA and the SDF role.
Where this term lives in law
Skills Development Act 97 of 1998
Sections: 9, 10
Creates the SETA framework and governs learnerships, apprenticeships, and skills planning in South Africa.
Frequently asked questions
How many SETAs are there in South Africa?
There are 21 SETAs, each covering a defined economic sector. The current list includes AgriSETA, BANKSETA, CATHSSETA (culture, arts, tourism), CETA (construction), CHIETA (chemical industries), ETDP-SETA (education), EWSETA (energy and water), FASSET (finance and accounting), FoodBev SETA, FP&M SETA, HWSETA (health and welfare), INSETA (insurance), LGSETA (local government), MERSETA (manufacturing), MICTSETA (media and ICT), MQA (mining), PSETA (public service), SASSETA (safety and security), Services SETA, TETA (transport), and W&RSETA (wholesale and retail).
Which SETA does my business belong to?
Your SETA is determined by the dominant economic activity of your business, classified using the Standard Industrial Classification (SIC) code you registered with SARS for SDL purposes. The Department of Higher Education and Training publishes a mapping of SIC codes to SETAs. Employers with operations spanning multiple sectors may be assigned to the SETA that matches their largest business activity. The SDL allocation on your SARS monthly EMP201 return follows that classification.
How do I claim SETA grants?
An employer must register with the relevant SETA, appoint a Skills Development Facilitator, and submit a Workplace Skills Plan and Annual Training Report by 30 April each year (for the previous 1 April–31 March tax year). Submission by the deadline unlocks the Mandatory Grant (20% of SDL paid). Discretionary Grants require separate applications against SETA-published funding windows and are awarded competitively for learnerships, bursaries, and internships aligned to the Sector Skills Plan.
Do SETAs register learnerships?
Yes — and that registration is what unlocks Section 12H of the Income Tax Act. A SETA-registered learnership must have a written learnership agreement between the employer, the learner, and the accredited training provider, filed with the SETA and containing the prescribed particulars. Once registered, the employer can claim Section 12H annual and completion allowances per learner, and score B-BBEE Skills Development points under the Amended Codes of Good Practice.
Contract templates using this term
3 templates reference SETA (Sector Education and Training Authority).