NAMIBIA TRAINING AUTHORITY NATIONAL … 04 16 NTA LEVY...namibia training authority national...

NAMIBIA TRAINING AUTHORITY

NATIONAL TRAINING FUNDSKILLS DEVELOPMENT

16th April 2013

Presentation Outline• Vocational Education and Training Act• NTA Governance Structure • NTF Framework

– Proposals, Exemptions, Definitions, Allocations– Other considerations

• Employer Training• Key Priority Training• NTA Implementation Capacity• Implementation Timelines• ICAN Submission and Proposals

VET Act of 2008Objectives of the Act; (Section 3)• To achieve an effective and sustainable system of skills

formation aligned to the labour market• To establish a stable organization and management

system• To establish and maintain a sustainable ‘partnership’

between government, the private sector and civil society to resource the provision of Vocational Education and Training

VET Act of 2008Makes provision for;• the establishment of the National Training Fund

Council, the ISCs and the SACC (Section 15) • the establishment of the NTF, which will consist of

money voted by parliament, any education and training levies, interest from the fund and any donations received by the NTA (S. 24 (1) & (2))

• the imposition of a training levy on employers (Section 35)

Governance Structure

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VET Act of 2008 The fund may only be applied to (Section 26);• Provide financial and technical assistance• Fund VET programmes and projects• Fund expenditure incurred by the NTA in the

performance of its functions as per the VET Act• Fund any other expenditure incurred by the NTA or

the Board in performing its functions• Fund any other expenditure authorized by the Act

NTF Regulatory and Levy Framework Proposals

• Levy amount will be 1.5% of employers Total Payroll

• Namibia Training Authority will act as the Collection Agency for the Levy

• Employers operating within the borders of Namibia with an annual payroll of N$ 350,000 or more are subject to the payment of the levy

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NTF Framework - Exemptions

(a) the state;(b) regional councils as defined in section 1 of the

Regional Councils Act, 1992 (Act No. 22 of 1992);(c) charitable organisations;(d) public and not for gain educational institutions; (e) faith based organisations; whether or not supported

wholly or partly by grants from government(f) Institutions can apply to the Minister for

consideration for exemption

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NTF Framework - Definitions

“payroll” means the total annualremuneration paid or payable by an employerto its employees during any financial year, butdoes not include any amount paid or payableto any person by way of a pension, pensioncontributions or retiring allowance;

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NTF Framework - Definitions

“remuneration” means the total value of allpayments in money or in kind made or owingto an employee arising from the employmentof that employee;

“financial year” is the financial year as stipulated in the VET Act;

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NTF Framework - Definitions

“vocational education and training”means education and training thatprovides learners with occupationalrelated skills and knowledge;

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Funding Allocations

Employer Training50%

Key Priorities35%

NTA 15% Administration

NTF Framework - Levy Allocations

NTF Framework – Other Considerations

“Namibianization Concept” – Wherebyemployers are incentivised to employ andtrain Namibians rather than expatriates.

This concept is to be considered over time

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Employer Training Criteria - Up to 50% of Levy Paid

The full 50% grant will be paid to employers complying with the following criteria• x% of all employees must be trained on an annual basis • The annual spend on training must be X% of payroll • Training Linked to the Business Objectives of the

Company• Training aligned with the labour market needs (ISC

List)

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Employer Training Criteria - Up to 50% of Levy Paid Continued…

• Training provides skills for accelerated development• Competencies developed during training• Training to establish avenues for promotion or

employability• Training to provide access to opportunities and equity

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Employer Training Evidence - Up to 50% of Levy Paid

• Learner attendance sheets• Continuous Assessment Sheets • Certification • Invoice/receipts for training conducted (External)• Letter from authorized staff member (Internal)• Formula for In-Company training costs• Duration of Training

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Y N

Requirements for Employer Training Grant

• Implementation of training and submission of evidence within specified timelines

• No outstanding payment of any monthly levy for the year

• No outstanding penalties and interest(Penalties at 10% and Interest as per the

Prescribed rate of interest Act)

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Employer TrainingProcess Flow

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Annual Levy Commencement Date 1st Sept, 2013

Monthly Payments September 2013 –March 2014

Final Payment March 2014

Reconciliation 20th April 2014

Training Evidence Submitted 50% Allocation to Employers

Unused Employers levy to Key Priority Fund

Employers Reimbursed April 2014

Unclaimed Employers Levy

• Transferred to Key Priority Funds• Used for Key Priority Interventions such as:

– Sector Needs– Government Priorities i.e NDP4, NHRDP– Strategic Projects for VET Expansion– Marginalized and Disadvantaged

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Key Priority Levy Disbursement -Process Flow

Analyses/Evaluation by NTA/NTF/ExCo.

Approval by NTFC

Implementation of project

Monitoring/ Evaluation/Reporting

Approval of Payments

Disbursement of Payments.

EoI/RFP:Government PrioritiesNational HR PlanNTA Strategic PlanIndustrial Skills Committees Priorities

NTA Implementation Capacity

• NTA/NTF Structures are being put in place (Strat. Plan)• Appointment of Compliance Inspectors• LCDRS (IT System)

– On Line Registration– IT System will calculate Levy to be paid– Monthly Return forms uploaded – Training Evidence and report uploaded– Employers can see levy paid– Levy Payments to NTF Bank Account Only by EFT, Cheque

and Cash

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In Process• Call Centre for Stakeholder Inquires• Support Unit for Employer Registration• VETMIS System in Process• Web Site Modification• Information Materials being prepared• Media Information Plan and Roll Out

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Implementation Timelines• Notice of intention to impose a levy 36 (1) 11th

April 2013• 30 days - Stakeholders to Make submissions 10th

May 2013• Evaluation of Submissions• NTA/Government Approval Process• Development of Regulations – Consultation

with Stakeholders

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Implementation Timelines• Gazette Notice 35 (1) Imposition of Levy 1st

August 2013• Levy Implementation 1st September 2013• Employer Registration by 30th September• 1st Levy Payment and levy return form by 20th

October 2013• Levy paid into NTF Bank account before 20th of

each month thereafter

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ICAN Submission• Need 839 CA’s to match South Africa• Course is relevant whether graduates

become CA’s or not• Play a role in shaping our economy• CA Namibia has an excellent reputation

Inside and Outside the country• Recognised by SAICA• CA contains Leadership Competencies

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ICAN Submission• Life Long Learning• Entrepreneurial Skills • ICAN Monitors Training• Ensure that Competence is obtained• Equipped with a wide range of skills• Appreciation of Business Environment• Will be placed on the NQA

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ICAN Proposal• Grants to be applicable for CA Training• Make available Annual Training Plan

formats• Make available Annual Training Plan report

formats• Other Information to prepare ICAN for the

introduction of the levy

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ICAN Proposal

• In Company/Employer Grant Prerequisites:– Annual Training Plan– Annual Training Report– Grant available for any training carried out in the

company regardless of the Nature i.e Short Courses– Training conducted for any population group

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ICAN Proposal• Strategic Cash Grant 20% of Levy Paid

Prerequisites:– Training for Strategic Areas– Disabilities– Learnership cash grant– Scarce Skills Study for employed and unemployed– Quality Assured and structured Workplace

Experience

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ICAN Proposal• Strategic Cash Grant 20% of Levy Paid.

Prerequisites:– Assessor/Moderator grant– Study Loan Repayment Grant– Beneficiaries of Academic Programmes that lead to a

qualification.– Beneficiaries of Bridging Programmes for access to

employment

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Way Forward

• Key Priority Workshop for the identification of priorities

• Request for Submissions• Submissions Prioritised/Approved by

NTFC/NTA Board• Allocations made and implemented by NTF

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Thank You

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