The Services SETA has officially opened the 2026/27 Mandatory Grants application window, giving employers across South Africa a valuable opportunity to reclaim part of their Skills Development Levy (SDL) contributions while strengthening workforce development.
The application window runs from 2 February 2026 to 30 April 2026, and all eligible employers are encouraged to submit their applications within this period to avoid missing out on funding that directly supports training and skills planning.
This article explains what Mandatory Grants are, who qualifies, how the process works, and why timely participation is essential—especially for employers planning training, learnerships, and skills programmes in the 2026/27 financial year.
What Is a Mandatory Grant?
A Mandatory Grant is a statutory reimbursement paid by SETAs to qualifying employers who comply with national skills development requirements. The grant is calculated at 20% of the Skills Development Levy (SDL) paid by the employer during the relevant financial year.
Mandatory Grants are designed to:
- Encourage structured workforce planning
- Support employer participation in skills development
- Improve alignment between workplace training and national skills priorities
The grant is not automatic. Employers must submit a compliant application and supporting documentation within the official window.
Who Qualifies for Mandatory Grants?
Levy Paying Employers (LPEs)
Levy Paying Employers are organisations with an annual payroll of R500,000 or more. These employers are legally required to contribute 1% of their payroll as a Skills Development Levy to South African Revenue Service.
If you are an LPE and have paid SDL for the financial year, you are eligible to apply for the Mandatory Grant—provided you meet the compliance requirements set by the Services SETA.
Non-Levy Paying Employers (NLPEs)
Importantly, Non-Levy Paying Employers are also eligible to apply.
NLPEs are employers whose annual payroll is below R500,000 and who are therefore exempt from paying SDL. Despite not contributing financially to the levy system, NLPEs can still access Mandatory Grant funding through the Services SETA, subject to qualifying criteria.
This inclusion ensures that small businesses and emerging employers are not excluded from skills development support.
Why the Mandatory Grants Matter for Employers
For many employers, Mandatory Grants are not just a compliance exercise—they are a strategic financial and operational tool.
Key benefits include:
- Recovering a portion of SDL contributions
- Supporting internal training and upskilling initiatives
- Strengthening compliance with skills development legislation
- Improving workforce productivity and retention
- Positioning the organisation for future discretionary grant funding
Employers who consistently participate in Mandatory Grants often find it easier to access additional SETA-funded opportunities such as learnerships, internships, and skills programmes.
The 2026/27 Application Window Explained
The Services SETA has confirmed the official submission period as:
- Opening date: 2 February 2026
- Closing date: 30 April 2026
Applications submitted after the closing date will not be considered, regardless of technical issues or incomplete documentation. Employers are therefore advised to begin preparation early and submit well before the deadline.
What Employers Need to Prepare
While specific requirements are detailed on the Services SETA website, employers should generally ensure they have:
- Accurate organisational and contact details
- Proof of SDL payment status (where applicable)
- A compliant Workplace Skills Plan (WSP)
- An Annual Training Report (ATR) reflecting completed training
- Alignment with Services SETA sector priorities
Accuracy and completeness are critical. Incorrect or incomplete submissions may result in rejection.
Full qualifying criteria and official guidance are available on the Services SETA employer portal.
Mandatory Grants National Roadshow: Personalised Support for Employers
To support employers during the 2026/27 cycle, the Services SETA has arranged a national Mandatory Grants roadshow focused exclusively on the application process.
These sessions are designed to:
- Explain the Mandatory Grants framework in detail
- Clarify common compliance errors
- Provide step-by-step guidance on submissions
- Answer employer-specific questions
The roadshow will be offered in both in-person and virtual formats, allowing employers across all provinces to participate.
This hands-on support is particularly valuable for:
- First-time applicants
- Small and medium enterprises
- Employers without dedicated skills development staff
- APPLY HERE
Registration for the roadshow sessions is open, and employers are encouraged to select the session that best suits their location and operational needs.
Strategic Importance for the Services Sector
The services sector plays a major role in South Africa’s economy, employing large numbers of workers across diverse industries. Mandatory Grants help ensure that training within the sector is:
- Structured
- Relevant to occupational needs
- Aligned with national skills priorities
By participating in the 2026/27 Mandatory Grants cycle, employers contribute to a stronger, more capable workforce while also meeting legislative obligations.
Common Mistakes Employers Should Avoid
To improve approval chances, employers should avoid:
- Waiting until the last week to submit applications
- Uploading outdated or inconsistent documentation
- Ignoring official guidelines and sector requirements
- Assuming previous approval guarantees future approval
Each financial year is assessed independently, and compliance must be demonstrated annually.
Frequently Asked Questions
What is the deadline for Services SETA Mandatory Grants for 2026/27?
The closing date is 30 April 2026. Late applications will not be accepted.
Can small businesses apply if they do not pay SDL?
Yes. Non-Levy Paying Employers with an annual payroll below R500,000 may still apply, subject to qualifying criteria.
How much can an employer receive?
The Mandatory Grant is calculated at 20% of the Skills Development Levy paid by Levy Paying Employers for the financial year.
Is attendance at the roadshow compulsory?
Attendance is not compulsory, but it is strongly recommended, especially for first-time applicants or employers seeking clarity on compliance.
Where can employers find official guidelines?
Detailed qualifying criteria and official information are available on the Services SETA employer section of their website.
Final Thoughts
The opening of the Services SETA 2026/27 Mandatory Grants window is a critical opportunity for employers to strengthen compliance, recover training-related costs, and actively participate in South Africa’s skills development framework.
With clear deadlines, structured support through the national roadshow, and inclusive access for both levy and non-levy paying employers, this cycle offers a practical pathway to building skills while supporting business sustainability.
Employers who prepare early, follow official guidance, and engage with available support are best positioned to benefit fully from the Mandatory Grants programme.
