NTA expects to collect N$337 million from VET Levy-paying employers

The Namibia Training Authority (NTA) expects to collect about N$337 million from eligible Vocational Education and Training (VET) levy-paying employers, chief executive officer, Jerry Beukes said yesterday.

The N$337 million will be used towards upskilling and training Namibians in key national priority trades and occupational areas, Beukes said. 

Between 2014/2015 NTA collected approximately N$266 million while in 2015/2016 a collection of N$280 million was made.

In 2017, the collections rose to N$320 million with the National Training Fund general manager, Joseph Mukendwa, expressing optimism that they would continue going up since they are based on payroll.

The VET levy program is meant to refocus the country’s training system and resources towards meeting national socio-economic development needs, Beukes said.

Out of the N$337 million, 50% (N$168 million) is envisaged to be disbursed under the employer training grant.

Beukes said 35% of this goes to key priority training grants while 15% goes to the NTA’s administration costs.

“Under government notice No 2014, all Namibian registered employers with an annual payroll of N$1 million or more are required to register and pay 1% of the value of their actual payroll as a Vocational Education and Training Levy to the Namibia Training Authority’s National Training Fund on a monthly basis,” said the CEO.

Beukes has also encouraged VET levy registered employers who wish to apply for the grant to make sure that they have paid their levies for the full financial year and have no interest or penalties outstanding.

“Employers who do not submit applications within the regulated 31-day period will forfeit grants. Any such unclaimed grants will be transferred to the VET levy’s key Priority Grant funding allocation, where such funds are to be committed towards strategic training interventions,” he said. 

He reiterated that a lack of supporting evidence accompanying employer training grant applications had hampered the administration and subsequent disbursement over the past three years.

Regulation 3(2) of the government notice No. 5 of 2014 says that distribution of levy funds must be made towards actual costs of training implemented by the employer contemplated in sub-regulation (1), in accordance with the NTA policies and procedures.

According to the employer training grant policy statements, eligible costs include training facilitator costs, training materials used, assessment and certification costs, S&T allowance costs and expenses for both the facilitator and the trainees.

Evidence to be submitted include, signed attendance registers, invoices and receipts from the training service provider, proof of payment for all training incurred among others.