Over 1 700 employers register for VET Levy: Namwandi

25 Apr 2014 13:30pm
WINDHOEK, 25 APR (NAMPA) – A total of 1 713 employers have registered as Vocational Education and Training (VET) Levy-paying employers.
Education Minister David Namwandi announced this during the launch of the VET Levy in the capital on Thursday.
Namwandi said this number includes employers from the wholesale and retail sector, representing 21 per cent; financial and business services sector (18 per cent); 17 per cent from the mining, quarrying, construction, electricity, gas, water supply and sanitation sector; 8 per cent from the hospitality and tourism sector; and 7 per cent from the health and social services sector.
“Based on the aforementioned registration numbers and the individual annual company payroll volumes, the Namibia Training Authority (NTA) expects to collect for the first 12 months of levy payment about N.dollars 198 million,” he said.
Namwandi noted that the NTA is applying this projection amount in terms of 50 per cent (about N.dollars 99 million) to be redistributed to participating employers as part of the in-company training grant allocation, provided such companies submit evidence of training conducted for their employers.
A further 35 per cent (about N.dollars 69 million) of the projected amount will be utilised towards key priority training areas as per national training needs identified by the NTA board of directors after consideration of the training needs identified under the Fourth National Development Plan (NDP4), Vision 2030 and the Sector Skills Plans of the various industry skills committees.
Namwandi said 15 per cent (about N.dollars 30 million) is to be utilised by the NTA for the administrative expenditures incurred during the implementation of the training activities and programmes.
“I therefore call on all employers as our most important partners and stakeholders in this regard, to embrace the VET Levy towards establishing a reliable source of financing technical and vocational education and training in our country,” he said.
Cabinet approved the imposition of the VET Levy on employers in compliance with section 35 to 43 of the Vocational Education and Training Act on 20 November 2012.
The registration process of the VET Levy started on 01 April 2014. The levy is payable by every eligible employer with an annual payroll of N.dollars 1 million or more as per Section 35 of the VET Act.
The VET levy requires affected employers to make a monthly contribution to the NTA’s National Training Fund (NTF), which is to apply such funds towards up-skilling and training Namibians in key national priority training and occupation areas.
(NAMPA)
ME/ND/AS