NAMIBIA TRAINING AUTHORITY NATIONAL TRAINING FUND SKILLS DEVELOPMENT 16 th 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 2008 Objectives 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 2008 Makes 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 5
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 7
NTF Framework - E xemptions (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 8
NTF Framework - Definitions “payroll” means the total annual remuneration paid or payable by an employer to its employees during any financial year, but does not include any amount paid or payable to any person by way of a pension, pension contributions or retiring allowance; 9
NTF Framework - Definitions “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; “financial year” is the financial year as stipulated in the VET Act; 10
NTF Framework - Definitions “vocational education and training” means education and training that provides learners with occupational related skills and knowledge; 11
NTF Framework - Levy Allocations Funding Allocations NTA 15% Key Priorities Employer Training Administration 35% 50%
NTF Framework – Other Considerations “Namibianization Concept” – Whereby employers are incentivised to employ and train Namibians rather than expatriates. This concept is to be considered over time 13
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) 14
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 15
Employer Training Evidence - Up to 50% of Levy Paid Y N • 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 16
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) 17
Employer Training Process Flow Unused Employers levy to Key Priority Fund Annual Levy Monthly Payments Final Payment Reconciliation Commencement September 2013 – 20 th April 2014 March 2014 Date 1 st Sept, 2013 March 2014 Employers 50% Allocation to Reimbursed April Training Evidence Submitted Employers 2014 18
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 19
Key Priority Levy Disbursement - Process Flow Analyses/Evaluation Approval by NTFC by NTA/NTF/ExCo. Implementation of project EoI/RFP: Government Priorities Monitoring/ National HR Plan Evaluation/Reporting NTA Strategic Plan Industrial Skills Committees Priorities Approval of Payments Disbursement of Payments.
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 21
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 22
Implementation Timelines • Notice of intention to impose a levy 36 (1) 11 th April 2013 • 30 days - Stakeholders to Make submissions 10 th May 2013 • Evaluation of Submissions • NTA/Government Approval Process • Development of Regulations – Consultation with Stakeholders 23
Implementation Timelines • Gazette Notice 35 (1) Imposition of Levy 1 st August 2013 • Levy Implementation 1 st September 2013 • Employer Registration by 30 th September • 1 st Levy Payment and levy return form by 20 th October 2013 • Levy paid into NTF Bank account before 20 th of each month thereafter 24
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 25
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 26
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 27
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 28
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 29
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 30
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 31
Thank You 32
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