How much do job and skill development programmes pay and how are they funded?

Unemployment is a lingering cloud over South Africa’s potential future.

Through the Unemployment Insurance Fund (UIF) and the Public Investment Fund (PIC), the Labour Activation Programme has a massive budget to create an employable workforce.

The Department of Employment and Labour has over R24 billion available to it for skills development programmes, with at least R360 000 earmarked for each individual in a top-tier programme.

Billions for skills development

Funded by the UIF via the PIC, the department’s Labour Activation Programme budget increased sevenfold since the 2023/24 financial year.

The programme was allocated R3.1 billion and R3.2 billion for the 2022/23 and 2023/24 financial years, respectively, but R23.8 billion has been set aside for this current financial year.

The remainder of the allocation includes R230 million for a National Pathway Management Network and Innovation Fund, and an extra R33 million for jobs and career expos.

ALSO READ: Unemployment underscored by weak economic activity – 1 in 3 unemployed in SA

The bulk Labour Activation Programme amount is focused on three tiers of skills development programmes: short skills courses, learnerships and apprenticeships.

The highest investment bracket per individual is the apprenticeship programme, which cost the government R364 993 per beneficiary.

Short skills programmes cost the UIF R53 213 per beneficiary, while the learnership programmes cost R100 513 per individual.

Jobs programmes for economic growth

Programmes are accessed through the multitude of Sector Education and Training Authorities (SETAs), which cover everything from manufacturing to services and much more.

Partner employers are linked to the programmes who Minister of Employment and Labour Nomakhosazana Meth states must commit to employment following the programmes.

ALSO READ: This is what the unemployment rate tells us about SA’s economy

Posed by the Democratic Alliance’s Michael Bagraim, the minister answered a parliamentary question on 6 September on the cost and sustainability of the programmes.  

Meth elaborated that post-training employment contracts provided by partners must be for at least 24 months, but that the goal was permanent employment.

Before being accepted, partners must submit plans on how they plan to support their enterprises beyond registration, as per Meth’s written response.

“The UIF retains 10% of the project fees until proof of employment is provided. The UIF no longer supports training for the sake of training,” stated Meth.

Breakdown of skills programme benefits

Meth’s response provided a breakdown of the costs that make up each tiered package.

The training component makes up the largest portion of investment in the beneficiary, costing the government R30 000, R50 000 and R206 000 per tier.  

ALSO READ: Letters of fading dreams: Abandoned GDE teaching assistants make desperate appeal

Short Skills Programmes last six months and come with a R2 000 stipend per month for the duration.

The R30 000 training component is spread across six months and beneficiaries are allocated R2 500 for programme-specific clothing as well as R5 000 for relevant tools.

Learnerships programmes last 12 months and offer a R3 000 monthly stipend, R50 000 for training, R7 500 for tools and clothing.  

The highest tier last three years and comes with a R3 500 stipend, over R200 000 allocated for training and R7 500 for tools and relevant clothes.  

Each programme comes with 7.5% project management fee payable to the partner.