We Put Training To Work
Call Us +264 61 2078 550

VET Levy

National Training Fund
BACKGROUND:
The Vocational Education and Training Act, Act 1 of 2008, was promulgated to:
a) Establish the Namibia Training Authority (NTA), the Board of the Namibia Training Authority and the National Training Fund (NTF);
b) Regulate the provision of Vocational Education and Training;
c) Provide for the funding of Vocational Education and Training;
d) Provide for the imposition of the Vocational Education and Training Levy;
e) Provide for the appointment of inspectors and designation of quality system auditors; and
f) Provide for incidental matters.

NATIONAL TRAINING FUND (NTF):
The National Training Fund consists of -
(a) money voted by Parliament for the purposes of the NTF, the NTA or for the administration of the VET Act;
(b) any education and training levies, interest and penalties paid by employers in terms of the VET Act;
(c) any money received by the NTA, including donations;
(d) any interest earned on investments of the NTF;
(e) any money to which the NTF is, or may become, entitled.

CONTROL & ADMINISTRATION OF THE NTF:
The control and administration of the Fund vests in the NTA Board.

THE NATIONAL TRAINING FUND COUNCIL (NTFC):
The National Training Fund Council were established by the NTA Board of Directors to assist the Board in the control and administration of the NTF.

APPLICATION OF FUNDS
Monies in the NTF may only be applied –
(a) to provide financial and technical assistance to employers, Vocational Education and Training providers, employees, learners and other persons or bodies to promote Vocational Education and Training;
(b) to fund Vocational Education and Training programmes and projects -
(i) identified in the National Policy on Vocational Education and Training or the NTA’s Strategic Plan for Vocational Education and Training; or
(ii) that the NTA considers necessary to achieve the objects of the VET Act.
(c) to expenditure incurred by the NTA in the performance of its functions in terms of or under the VET Act, including its core administration costs as contemplated in Sections 5 and 7;
(d) to any other expenditure incurred by the NTA or the Board in, or in connection with, the performance of their functions in terms of the VET Act;
(e) to any other expenditure authorised by the VET Act.

BANK ACCOUNTS OF THE FUND
The VET Act requires the NTA'S Board of Directors to open and maintain with a bank or banks approved by the Minister of Education from time to time -
(a) an account known as the National Training Fund Account into which all monies payable to the NTF must be deposited;
(b) a reserve account into which surplus money in the NTF may be deposited, and from which any investments contemplated in Section 28 may be made.

The Board may operate subsidiary accounts within the NTF Account. The objects of the reserve account contemplated in Subsection (1) are –
(a) to provide for unseen demands on the NTF; and
(b) to stabilise the level of Vocational Education and Training levies.

The Board determines the amounts to be held in the reserve account and may authorise payments from the reserve account. The Board, with the approval of the Minister of Education and the Minister of Finance, may invest surplus money in the NTF with due regard –
(a) to the maintenance, growth and preservation of the Fund; and
(b) to economic and commercial viability of any investments.

INCOME TAX EXEMPTION
The income of the NTF, including income from any investments, is exempt from income tax or any other tax.

The income of the Fund, including income from any investments, is exempt from income tax or any other tax.

The financial year of the NTA and of the Fund ends on 31 March of each year.

Click on the link below and read more about Government Notice No. 5 - Regulations Relating to Use of Vocational and Training levies for funding Vocational Education and Training programmes and projects and for providing technical and financial assistance and Government Notice No. 6 - Imposition of Vocational Education and Training Levy on employers, as published in the Government Gazette on the 27th of January 2014.

Government Notices No.5 & No. 6 - Regulations Relating to Use of VET Levies for Funding Vocational Education and Training Programmes and Projects and for Providing Technical and Financial Assistance & Imposition of VET Levy on Employers.
Operational Structure
The National Training Fund Department (NTF) is a department of the NTA and it deals with all matters relating to the fund, especially all levy collection and levy disbursement issues, including the registration of employers for levy payment and grant purposes. It is headed by a General Manager: National Training Fund.

It consists of three subdivisions:
a) Levy Collection;
b) Levy Disbursement; and
c) Training Advisory Services.

The NTF is governed by the National Training Fund Council (NTFC), which is a committee of the Board of Directors. The Board of the NTA remains the ultimate custodian of the NTF.

In terms of the management of funds, the NTA Board/National Training Fund Council are responsible for the allocation of funds, whereas the National Training Fund Department is responsible for the management of allocations, agreements and disbursement amounts. The NTA's Finance Department is responsible for payments and financial/accounting records.
Registration
The final framework requires with the exception of exempt organisations, all employers operating within the borders of Namibia with an estimated annual payroll of N$1 000,000-00 (one million Namibia dollars) or above, for each Financial Year (1st April 2014 - 30th March 2015 onwards), as defined in the VET Act of 2008, to register with the NTA.

Following the announcement from the Minister of Education of the VET Levy requirements in the Government Gazette on the 27th January 2014, eligible employers were required to register with the NTA. The commencement date for the imposition of the VET Levy was the 1st of April 2014.

Registration is a continuous process for new employers and for employers who since has exceeded the threshold. Make sure that the following information is available to ensure a smooth registration process:
• Name of Company/Employer;
• Type of Business Entity;
• Number of Branches/Subsidiaries;
• Nature of Business – Business Sector/Subsector;
• Registration Number, Income Tax Number and Social Security Registration Number of Company;
• Physical & Postal Address, Contact Particulars such as Telephone, Fax and E-mail details of the Company;
• Number and Gender of Employees;
• Full Banking Details; and
• Estimated Annual Payroll for Current Financial Year.

Employers are encouraged to register online through the link below.
http://www.lcdrs-nta.com/content/home

Where online registration is not possible, registration forms are available from the NTA's National Training Fund Department, or can be downloaded and completed through the link below.
Employer Levy Registration Form

Complete and submit the form, or e-mail it to levy@nta.com.na Registered employers should complete and return the Payroll Return Form to the NTA each month following the levy implementation date.

For assistance, call us at 0800 2078 550, toll-free or email, levy@nta.com.na
Exemptions
Under the final framework for the implementation of the VET Levy, the following entities will be exempt from paying the VET Levy:

• The State;
• Regional Councils as defined in Sect. 1 of the Regional Councils Act of 1992;
• Charitable organisations;
• Public and not-for-gain educational institutions; and
• Faith-based organisations; whether or not supported wholly or partly by grants from government.
Payment
BACKGROUND
The Namibia Training Authority has been delegated by the Minister of Finance to collect the VET Levy. The NTA's National Training Fund Department deals with all matters relating to the fund and especially all VET Levy collection and disbursement issues and the registration of employers for levy payment and grant purposes.

Employers register with the NTA in line with the requirements set out in the Minister of Education’s Notice in the Government Gazette, published on the 27th of January 2014. They forecast their total payroll for the financial year and calculate their liability to pay levy and incorporate the projected levy amounts in the employer registration form.

RATE
Under the approved framework, the levy rate is 1% and the amount of levy to be paid is calculated as a percentage of annual projected payroll and paid monthly in arrears on, or before the 20th of the month that it is due, i.e. VET Levy payable for April 2014 should be paid on, or before the 20th May 2014. Payroll is defined according to the Labour Act of 2003 as remuneration being the total value of all payments in money, or in kind made or owing to an employee. Remuneration paid to employees below the Income Tax threshold must be incorporated into the employer’s payroll for determining the leviable amount in the Act.

The amount payable can be calculated as follows:
Annual payroll/remuneration is N$1,000,000-00.
1% Annual Levy = N$10,000-00.
Monthly Return = 10,000/12 = N$833-00 each month.
Levy Collection and Disbursement Reporting System
The NTA has developed a fit-for-purpose information technology system, which provides for registration, payments, payment of interest and penalties and the disbursement of funds.

The system is called the Levy, Collection Disbursement Reporting System (LCDRS) and is accessible through the link below:
www.vetmis-nta.co.za
Employer Training Grants
BACKGROUND
All levies collected by the NTA in a financial year are to be disbursed at the end of that particular financial year, in line with the following allocation:
• 35% for Key Priority Training Grants;
• Up to 50% for Employer Training Grants; and
• Up to 15% for the NTA’s Administration Costs.

WHAT IS THE EMPLOYER TRAINING GRANT?
The Regulations Relating To Use Of Vocational and Training Levies for Funding Vocational Education and Training Programmes and Projects and for Providing Technical and Financial Assistance: VET Act No.1 of 2008 define training as “training which is related to vocational training provided by a private vocational training provider accredited by the Namibia Qualifications Authority (NQA), or a state owned vocational training center.”

In line with this definition, the NTA is to consider the following training interventions under the Employment Training Grant:
a) All NQA accredited VET courses;
b) Training courses not accredited by the NQA, but related to accredited VET courses;
c) As an exception, training courses not accredited, not related to accredited training courses, but related to VET courses. This may include short courses, in-house training and training outside of Namibia. Approval by the NTA Board is required in this case. This short-term provision will be reviewed after two years.

ELIGIBILITY CRITERIA FOR EMPLOYER TRAINING GRANTS
Employers must meet the following eligibility criteria to submit a claim under the Employer Training Grant:
a) Up to date with the payment of the VET Levy payable by the employer;
b) Does not have any interest referred to in Section 38 of the VET Act or any penalty referred to in Section 39 of the VET Act, outstanding in respect of the VET Levy;
c) Has submitted to the NTA evidence of the implementation of training i.e. completed and submitted a claim form together with relevant documentation (copies of invoices and receipts where applicable).

COSTS QUALIFYING FOR GRANTS
Where training is conducted in-company, eligible costs include:
a) Facilitator training costs for the duration of training;
b) Cost of training materials used in the training process;
c) Assessment and certification costs; and
d) Subsistence and Travelling (S&T) allowance costs and expenses, for both facilitators and trainees.

Where training is procured from, or conducted by an external service provider, the following line items will be regarded as direct training costs:
a) S&T allowance costs to and from the training venue; and
b) Invoiced/receipted costs from the training service provider.

EVIDENCE OF TRAINING IMPLEMENTATION
Evidence may include the following:
a) Signed attendance register as per the NTA template;
b) Receipts (invoices) from the training service provider;
c) Receipts for training materials procured;
d) S&T records in accordance with company policy;
e) Accommodation receipts;
f) Assessment and certification records; and
g) Any other supplementary records and receipts applicable to the training.

For inspection purposes, employers are to maintain all of the aforementioned records and any other relevant supporting information, in line with the Directorate of Inland Revenue’s prescribed five-year retention period. Employers who comply with the above criteria must submit claims to the NTA within 31 days after the end of the financial year.

HOW DO COMPANIES CLAIM?
Employers should complete and submit claim forms online at www.nta.com.na. However, before doing so, employers need to register on the Levy System online portal, as per the sequential process below:
a) Log onto www.nta.com.na
b) Access link on pop-up box on website main page..
c) Set up Default E-Mail account.

Once registered on LevSys, employers can proceed with the online completion of claims.

Should you experience any problems with your VET Levy Payments and/or your Employer Training Grant Claims, contact our Customer Care Centre at 0800 2078 550, or e-mail us at levy@nta.com.na
Key Priority Training Grants
BACKGROUND
Applications can be made to the NTF for key priority grants for the provision of technical and financial assistance to employers, VET providers, employees, learners and other persons or bodies, and funding of VET programmes and projects.

Applications will be considered following the publication of expression/s of interest requested by the NTA. Any employer, VET provider, employee, learner and other person or body who wants to apply for the payment of a key priority grant must complete and submit the required application to the NTA. The application must comply with NTA procedures, notification criteria and requirements.

All applications referred to above must be accompanied by all documents or information as the NTA may require. The NTA Board /National Training Fund Council will review needs and develop criteria in line with Government Priority Needs, needs articulated by the NTA's Industry Skills Committees and needs defined under the NTA Strategic Plan and the National Human Resources Development Plan.

PAYMENTS FOR KEY PRIORITY GRANTS
All payments are made in line with a Service Level Agreement (SLA). Payments may be made periodically on specific deliverables as outlined in the SLA. Monitoring and evaluation activities will be carried out to ensure the completion/achievement of set deliverable/s.

Furthermore, final reports are then to be evaluated against project plans. If approved, further monitoring and evaluation activities will be conducted by the NTF, to be followed by invoicing and payment.

APPLICATIONS
All legitimately established stakeholder organisations and institutions who can deliver the projects in line with good accounting practice and project management principles in line with the agreed criteria may apply. Applications can be made to the NTA in compliance with the criteria and conditions as contained in the Expression of Interest advertisement.
Contact
For Policy Issues and Strategic Issues, contact:
General Manager: National Training Fund
Joseph Mukendwa
09264-61-2078 555, jmukendwa@nta.com.na

For issues/queries pertaining to Fund Administration; Service Level Agreements; Costing Models; Grant Payments; and Disbursement, contact:
Manager: Fund Administration – Veripi Kangumine
09264-61-2078 506 , vkangumine@nta.com.na

For issues/queries pertaining to Levy Collection, Exemptions and Penalties, contact:
Manager: Fund Collection – Genette Shitalangaho
09264-61-2078 131, gshitalangaho@nta.com.na
Bank Account
In line with Section 7 of the Notice for the Imposition of the Vocational Education and Training Levy, every employer who must pay the levy in terms of the notice, must make such payments into the National Training Fund Bank Account of the Namibia Training Authority.

Payments may be made by way of electronic funds transfer, cheque or cash directly into the account. Below the account details:

Name: National Training Fund
Bank: Bank Windhoek
Acc. #: 800 390 93 68
Branch Code: 482-172
Branch: Kudu, Windhoek.

For further queries, contact our Customer Care Centre at 0800 2078 550.

Registration

Who is required to register?
With the exception of exempted organisations all employers operating within the borders of Namibia with estimated annual payroll of N$1,000,000 or above for each Financial Year from 1st April 2014 are required to register with the Namibian Training Authority and pay the levy.
What information are employers required to furnish to the Namibia Training Authority on registration?
The Government Notice-Vocational Educational and Training Act, 2008 (Act No1 of 2008): Imposition of a vocational education and training levy on employers and its associated regulations-requires all employers stated in (1) above to register with the NTA and submit the following information:-
(a) The name of the business of the employer,
(b) The type of entity (sole proprietor, private employer, public employer, subsidiary or holding employer, close cooperation or other entity of the business,
(c) The number of branches or subsidiaries of the employer,
(d) The business sector, subsector or nature of the business of the employer,
(e) (i) the registration number, if any, of the business and
(ii)the income tax number of the business and
(iii)the Social Security Number of the employer
(f) The name of the contact person at the business and the contact particulars of the contact person
(g) The physical and postal address of the business
(h) The contact particulars of the business, such as telephone, fax, e-mail, cell numbers
(i) The number of employees,
(j) The gender of the employees
(k) The full banking details of the business
(l) Estimated annual payroll amount for the current financial year
(m) A completed levy payment registration form which is available at the NTA

A separate completed levy registration form must be furnished in respect of each subsidiary of the employer.
What happens if an Employer’s payroll for an incoming Financial Year is estimated to be below N$1,000,000?
Employers with a projected annual payroll of less than N$1 Million do not need to register as a levy paying employer.



What happens to eligible employers who commence business after the official launching date of the VET levy on the 27th February 2014?
Employers with a projected payroll of N$1,000,000 or more should register within the first month of business and pay the levy accordingly. Employers who fail to register on time may face interest and penalties that will be backdated to their commencement date.
What will the NTA do in terms of non-registration? ?
The NTF will estimate an employer’s payroll and related levy at 1% of annual payroll in cases where the employer has failed to register. Penalties and interest may also be applied.
What will happen to an incomplete or unacceptable registration application?
Employers have a responsibility to register on time and submit the correct information as required. Persistent non-compliance with the registration process may result in the imposition of interest and penalties on projected levy amounts.

How will requests for amendments to registration data be processed?
Requests for changes must be made to the National Training Fund Department who will make the necessary changes e.g. amendments/additions/omissions etc. The Manager National Training Fund – Levy Collection will approve all amendments.
Is exempt institutions automatically exempt or must they apply for exemption?
Employers in the five listed groupings are automatically exempt but may be required in some cases to submit evidence to the NTA.
Do you register your employees for the training levy.?
No, only employers with an estimated annual payroll of N$1,000,000-00, or above, for each financial year, are required to register with the Namibia Training Authority.

If my projected annual payroll does not exceed N$ 1million, but could exceed the threshold due to unexpected overtime/ additional bonus payments etc. should I register?
Yes, employers are encouraged to register and pay. Reconciliation will be done at the end of the year and if it transpires that the payroll is still below the threshold, a refund will be made
What happens if I do not register and my payroll exceeds the exemption level?
If the employer does not register and it transpires that the payroll is in excess of N$ 1 million, then penalties and interest on outstanding amounts can be charged
How will employers register with the NTA?
Employers are required to register with the NTA by completing the registration form via the NTA Website at www.nta.com.na

Registration

Who has to register?
Under the final framework, with the exception of exempt organizations, all employers with an estimated annual payroll of N$1,000,000-00, or above, for each financial year, are required to register with the Namibia Training Authority

Who are the exempt organisations?
Under the proposed framework, the following employers are exempt from payment of the levy, namely -
o The State;
o Regional Councils as defined in Sect. 1 of the Regional Councils Act of 1992;
o Charitable organisations;
o Public and not-for-gain educational institutions; and
o Faith-based organisations; whether or not supported wholly or partly by grants from government.
When will the process of Registration commence?
Following the announcement by the Minister of Education of the final levy framework in the Government Gazette on the 27th of January 2014, it is required that eligible employers register with the Namibia Training Authority within 30 days.

The commencement date for the imposition of the levy is the 1st of April 2014.
How does an employer register?
The NTA encourages employers to register online.

Click on the link below to access the registration portal on the VET Levy Collection, Disbursement and Reporting system.

http://lcdrs.nta.com.na/content/home.cshtml

Where online registration is not possible, download the Employer Levy Registration Form and send the completed form to levy@nta.com.na

Forms can also be collected and submitted at the NTA Head Office in Rand Street, Khomasdal, Windhoek.
Who should register?
The framework requires all employers eligible for payment of the VET Levy, (i.e. not exempt as seen under exemptions), operating within the borders of Namibia and with a payroll in excess of N$1 million to legally register with the Namibia Training Authority.
What happens to eligible employers who commence business after 27th February 2014?
Employers should register within the first month of business and pay the levy accordingly. Employers who fail to register on time may face interest and penalties that will be backdated to their commencement date.
What will happen to an incomplete or unacceptable registration application?
Employers have a responsibility to register on time and submit the correct information as required. Persistent non-compliance with the registration process may result in the imposition of interest and penalties.
How will requests for amendments to registration data be processed?
The National Training Fund Department will process change requests e.g. amendments/additions/omissions etc.
The Manager National Training Fund – Levy Collection will approve all amendments.

Payment of Levy

Who is the collection agent?
The Namibia Training Authority (NTA) was delegated by the Minister of Education in concurrence with the Minister of Finance to Collect the Levy. The NTA deals with all matters relating to the levy, including employer registration, levy collection and disbursement.
Who pays the levy?
Every employer, with an annual payroll of N$ 1, 000, 000 or more must pay the levy. Employers estimate their annual payroll for the Financial Period, e.g. 1st April 2014 to 31st March 2015, and calculate their liability to pay levy and incorporate the estimated payroll in the initial employer registration form.
Employers will be required to submit payroll returns to the NTF each month.
What is payroll?
Payroll means the total annual remuneration paid or payable by an employer to its employees during any financial year.
What is remuneration?
Remuneration means the total value of all payments in money or in kind made or owing to an employee arising from the employment of the employee (as defined in the Labour Act of 2007).

Remuneration paid to employees below the Income Tax threshold must be incorporated into the employer’s payroll for determining the levyable amount in the Act.
What is the rate of levy?
The levy rate is 1% of payroll as defined above.

How is the Levy calculated?
The levy is calculated on actual payroll as follows:

Annual payroll/remuneration is N$1,200,000.
1% Annual Levy = N$12,000.
Monthly Return = 12,000/12 = N$1,000 each month

How often should the Levy be paid?
The levy is payable on a monthly basis on or before the 20th day of the following month and each consecutive month thereafter
How is the levy paid?
Employers should pay the levy by Electronic Funds Transfer, by cash or cheque into the NTF – Bank Account which will be communicated to employers on registration.
What support information is required?
Payment of the levy must be accompanied by a completed payroll monthly return form which is available online at www.nta.com.na. and should be completed on line or returned to the NTF for reconciliation with the paid amounts.
Monthly Return Forms/payment of the Levy
Where:
(a) Any employer is required to pay the levy fails to submit monthly payroll return (payroll);
(b) The NTA is not satisfied with the monthly return form (payroll); or
(c) An employer has failed to pay the levy in accordance with the Vocational Education and Training Act (2008)

The NTA may make a reasonable estimate of the amount of any levy payable and issue to the employer a notice of assessment for the unpaid amount.
What are the benefits of paying the levy?
Up to 50% of the Levy Paid by employers is available for Employer Training grants
35 % of the levy paid by employers is available for Key Priority Funding Grants
15% of the levy paid is used for administration purposes for the collection and administration of the levy system.
What is the Financial Year?
The Financial Year commences on 1st April and ends on 31st March. The levy payment period commenced on 1st April 2014 and will continue in succeeding years.
What happens to employers who don’t pay the levy?
A Penalty of 10% on Outstanding Levy will be applied together with interest (as per the Prescribed Rate of Interest Act (1975)) if the levy continues to remain unpaid.

National Training Fund will notify the offending employers and in turn notify the inspector’s department (at the Ministry) and instigate legal proceedings if the levy continues to remain unpaid
How will the NTF deal with unpaid / underpayment of the levy?
NTF will apply penalties and interest to unpaid or underpaid levy and will pursue all outstanding debts
How will the NTF deal with overpayments of the levy?
NTF will refund overpayments at the end of the financial year.
What happens if an employer refuses to pay levy?
An estimate will be made of the amounts owed including interest and penalties for employer’s that refuse to pay the levy. The names and details of non-compliant employers will be processed for action through the Ministry of Education compliance department. Compliance inspectors with special investigative powers will visit the companies and legal action will be taken on defaulting levy payers.
Defaulting employers who don’t pay levy will not be entitled to any benefits from the scheme.
What happens if an employer makes a false payroll return?
Notification will be sent to the Compliance Inspectors Unit. On the advice of the inspectors the National Training Fund will initiate legal proceedings against the employer.
What will the NTA do in terms of late submission / non-submission of payroll returns by employers?
The NTF may estimate an employer’s payroll / levy in cases where the employer has failed to submit the required payroll return form on time. The NTA – NTF may also estimate the employers’ payroll where the NTA doubts the accuracy of the return / amount of levy paid. Penalties and interest may also be applied.
How will the compliance be enforced?
In accordance with Section 43 of the Vocational Education and Training Act the NTF will provide for the appointment of inspectors to enforce compliance in so far as it relates to the collection of levies by the NTA.
Are Directors Fees included in total payroll?
Yes, providing that the Director is employed by the employer and receives director fees as part of his annual pay and which is taxable under normal PAYE conditions. If the Director is not an employee of the employer and receives Director fees, then it will not form part of payroll for the employer concerned.

Are incentive bonuses and fringe benefits included in total payroll?
Yes.
Does the payroll include owner salaries?
Yes,
If I am a member of a close corporation but also work for the close corporation, am I an employee for VET levy purposes?
Yes, all salaries paid via the payroll are subject to the levy.

Levy Compliance

What happens if an employer is late with the submission of levy payroll return?
Employers will incur an additional payment penalty of 10% on amounts outstanding including interest as stated in the Prescribed Rate of Interest Act of 1975.

An estimate will be made of the amounts owed including interest and penalties for employers that fail to pay the levy. The names and details of non-compliant employers will be processed for action through the Ministry of Education Compliance Department. Compliance inspectors with special investigative powers will visit the companies and legal action will be taken against defaulting levy payers. Defaulting employers who do not pay the levy will not be entitled to any benefits from the scheme.
What happens if an employer pays levy even though payroll for the month/s is /are below the N$1,000,000 exemption threshold?
Employer accounts will be reconciled at the end of the financial year and those employers that are under the exemption level of N$1 million annual payroll will be refunded.
What happens if an employer’s payroll was estimated to be above the threshold of N$1,000,000 during the Financial Year and due to changing circumstances is below the exemption threshold?
Employer accounts will be reconciled at the end of the financial year and those employers that are under the exemption level of N$1 million annual payroll will be refunded. If the company projects that the annual payroll for the coming year will also be less than the exemption level then the employer should complete the de-registration form online and submit it to the Namibia Training Authority – National Training Fund Levy Collection.
What happens if an employer makes a false payroll return.
Notification will be sent to the Compliance Inspectors Unit. On the advice of the inspectors the National Training Fund will initiate legal proceedings against the employer
Who will process payroll returns and payments?
All payments and disbursements will be made by the Namibia Training Authority’s Finance Department following approval from the National Training Fund.

Fund Application

What happens to the VET Levy that employers pay?
The levy that employers pay is allocated as follows:
• Up to 50% of levy is allocated for Company Training Grants.
• 35% of levy paid is allocated for Key Priority Funding for specific training interventions
• 15% of levy paid is allocated for the collection and administration of the levy.
What happens to unclaimed company training grant allocations?
Unclaimed company training grants will be reconciled at the end of the financial year and added to the Key Priority Allocation and Disbursement against sector needs and key priorities as determined by the NTA Board
What happens to Interest and Penalties?
Interest and penalties will be added to the Key Priority allocation for disbursement against sector needs and key priorities as determined by the NTA Board.

Employer Training Grants

What grants can employers claim?
Employers can claim Company Training grants of up to 50% of levy paid for employee training based on the submission of evidence of training implemented and other criteria approved by the NTA Board.
What are employer training grants?
Employer Training Grants are grants paid by the NTA to levy paying employers who engage in vocational related training.
The benefits to employers include but are not limited to:
• Incentivize / reward employers that train,
• Increase productivity,
• Increase competition and growth
• Job creation
• Reduce unemployment
• Quality training linked to accreditation
What training qualifies for a training grant?
Training to be considered for the employer grant must meet one of the following:
i. All NQA accredited VET training;
ii. Training courses not Accredited by NQA, but related to accredited VET training courses;
iii. As exceptions, training courses not accredited, not related to accredited training courses, but related to Vocational Training Courses. This may include short courses and training procured outside Namibia. Approval by the NTA Board is required in this case.
What is vocational related training?
Vocational related training refers to training provided by the Vocational Training Centres and any private Vocational Training providers accredited by the Namibian Qualifications Authority (NQA)” up to level 5.
What does the term “Related To” Mean?
‘Related to’ in the context of the given criteria means belonging to the same group or associated or comparable with the accredited training on Level 1 to 5. The basis of determining the relatedness is making comparisons of learning outcomes, knowledge, skills and competencies to be obtained from the training, to qualifications or unit standards registered on the NQF in that specific sector and also other sectors where the occupation is cross cutting.
Can You Provide Some Examples of Relatedness?
For example, if a mechanical engineer (an employee of a VET Levy paying company) attends a short course on either theory of metals, combustion engines, joining of metal beams, technical drawing, design or possibly some basic welding; the comparison can be made by looking at the learning outcomes of qualifications or unit standards for metal fabrication, welding, boiler making and automotive offered by the accredited private VTPs as well as VTCs. In the given examples, the learning outcome of a short course on combustion engine is related to the learning outcomes of unit standard Unit ID 217: Overhaul engine sub assembly.

For personnel working in a financial firm attending short course training on advanced spread sheet, book keeping, and financial management; the learning outcomes of such short courses are comparable with the training on International Computer Driver’s License, National Certificate in Bookkeeping and the Level 5 Bankers Certificate in Banking, Finance and Credit offered by the Institute of Bankers.

Qualifications and unit standards registered on the NQF incorporate social issues e.g. HIV, Health and Safety, First Aid and soft skills such as communication, presentation skills etc. If employers conduct training in social issues and soft skills, such courses are related to accredited VET training programmes; as such the training is eligible for a grant. For example, the learning outcomes of a three day First Aid Training is related to learning outcomes of Qualification Q0172 Occupational Health and Safety, whilst, a three day HIV survey - private sector engagement trainings’ learning outcomes is related to unit standard 330-331(Demonstrate knowledge of HIV and AIDS in the Workplace & Demonstrate knowledge of HIV and AIDS).
VET Related Exemptions?
Regardless of how or where the training is conducted, training courses not accredited, not related to accredited courses, but related to vocational training courses will require approval of the NTA Board.

Is Training Conducted Outside Namibia eligible for In-Company Grants.
Yes VET Related Training conducted outside Namibia is eligible but is subject to NTA Board Approval
Are There Other Types of Training that Need NTA Board Approval?
Regardless of how or where the training is conducted, training courses not accredited, not related to accredited courses, but related to vocational training courses will require approval of the NTA Board.

Training Courses to be considered in this criterion could include:
• Short courses not accredited, not related to accredited VET training courses;
• In-house training not accredited but related to VET;
• Training procured from external service providers not accredited, not related to accredited training courses but related to VET.
Can Employers Claim grants for Training Interventions for Non Employees?
Employers who provide funding to employees and none employees who are studying for courses leading to a vocational qualification (Level 1 to 5) from the list of NQA accredited programmes are also eligible to claim the actual cost spent on training from employer training grants.
When will the complete list of accredited Training Providers and the courses /qualifications be disseminated to employers?
The list of accredited Training Providers and scope of accreditation (qualifications) is available on the NQA website (http://www.namqa.org/)
What funds are allocated to employer training grants?
50% of the levy collected from employers is available for disbursement to all participating employers
Who is eligible to claim Employer training grants?
Employers who have registered for levy with the NTA, have paid the levy and have no interest or penalties outstanding are eligible to claim grants provided they comply with the NTF criteria, terms and conditions
How do employers apply for employer training grants?
Employers should apply on-line using the NTF standard application form via www.nta.com.na
Does an employer need to be accredited/registered as a training provider in order to qualify for employer training grants?
No, employers conducting vocational related training in-house to their employees are not required to be registered with the NTA or accredited with the NQA. However, companies are encouraged to apply for registration with the NTA.
How can an employer register as a training provider?
By contacting the Quality Assurance Division of the NTA.
How can an employer get Accreditation as a training provider?
By contacting the Namibian Qualification Authority at 061 384100
What are the costs to be included in the claims for training conducted in- house by employers?
When the training is conducted in-house by employers, the following are examples of costs that qualify for a grant:

• Training facilitator costs for the duration of training,
• Cost of training materials used in the training process,
• Assessment and Certification Costs,
• Subsistence and Travelling allowances (S&T) costs for both the facilitator and trainee.
What are the costs to be included in the claims when the training is externally procured by the employer?
Where the training is procured externally by the employer, the following line items will qualify for training grants:
• Travel and Accommodation (S&T) Costs for the trainee to the Training Venue, and
• Invoiced/Receipted Costs from Service Providers.
Will all costs be covered?
Grants will be paid towards “Actual Costs” within reasonable cost norms.
How is the reimbursement calculated and what do you mean by up to 50%?
Training grants are based on actual costs of training implemented by the employer. If the actual costs of training are less than 50% of the levy paid, then, the claiming employer will receive the lesser amount i.e. the actual costs incurred in training.
When should applications for employer training grants be submitted?
All applications should be submitted when all programmes / projects are completed but not later than one month after the end of the financial year unless otherwise agreed with the NTF.

Payments will be made on an annual basis, based on actual and verifiable costs incurred
What is the process for payment of employer training grants?
Applications for payment together with supporting documentation should be submitted online via www.nta.com.na for processing by the NTF
What Support Evidence must the employer provide with the claim?
All employers seeking in-employer training grants must submit a list of the number of employees trained including duration and maintain for inspection evidence of training implemented. Such evidence of training records will be as follows:

• Signed attendance registers reflecting start and end times of training,
• Receipts (invoices) from training providers,
• Employment and salary records for staff members
• Receipts of training materials,
• Subsistence and travel records with related employer policy
• Accommodation booking records or receipts
• Assessment and Certification records,
Any other supplementary records, receipts applicable to the training.
How Long Do I need to Keep such Records?
Employers must retain all records relating to evidence of training implemented for inspection and validation by the NTA for a period of five years from the date of the claim.
How Can I Avoid Making Mistakes in the Claim Process?
The training programme name and amount on the claim must match what appears on the evidence (e.g. invoice, attendance register). If the submitted invoice does not specify what training was provided or is not dated, it will not be accepted.
Conversely, the dates on the evidence for accommodation receipts, subsistence and travel records must match the duration of the training
With regard to the Submission of training records, Certificates take a while to be sent as sometimes there are assignments to be completed, can the submissions be made without them?
Employers are not required to submit certificates with the claims, however, the NTA will request for such evidence where the employer has included Assessment and Certification Cost as part of the claim.
In-house training, is there rules and regulations for that?
The training for which employers submit claims should be related to VET accredited training programmes offered by a private training providers or vocational training centres.
How do we ensure quality training in the workplace?
Employers should define the scope of the organisation as per its training needs and as well the scope of each skills project or intervention. The scope will identify the inputs, range, criteria, teams and outcomes of the organisational skills needs and the various skills interventions. The skills project should then be scheduled according to relevant times, dates and teams.
How do I make a grant submission?
Employers will be required to make submissions online at www.nta.com.na unless through other prior agreement with the NTA.
What are the steps in the Process for Making a Submission?
• Employer Logs on to www.nta.com.na or receives file attachment by email
• Employers Download the file attachment and Install Levy System on to their Local Computers.
• Employer User Logs On.
• User Activates System Installation.
• Employer User Sets up Default E-Mail account on the System.
• Employer User Loads Contact Details of Financial Person on the System.
• Employer user Loads Company Training Interventions.
• Employer User E-Mails Submission to NTF.
• NTF VETMIS Captures Submission
• Training Advisory Division Evaluates Submission.
• Manager TAS Sign Off.
• Submission forwarded to Levy Disbursement for Validation and Processing.
• Funds Deposited to Employers
How will employers receive payment of Training Grants?
Payments for valid claims will be made into the employer’s bank account by EFT.
How will the claims procedure be conducted?
All eligible employers who comply with the criteria referred and who intends to receive a training grant must prepare and submit, within 31 days after the end of the financial year (March 31), an application to NTA unless the NTA on good cause extends the period.
How long will the credit refund process take?
Training grant applications will be processed within 90 days following the end of the financial year.
How are small businesses that are not eligible to pay the levy going to benefit from the levy?
Small businesses who are not levy payers are not eligible to claim from employer training grants. However, small businesses may benefit through the 35% allocation subject to NTA requirements and available funds.
What is meant by unclaimed money?
Unclaimed money means money described in section 2 (b) of the Regulations relating to the use of vocational and training levies, when, as shown by the records of the NTA, the employer has not, within the times provided in section 4 of the said regulations submitted a valid training grant claim to the NTA then these amounts are classified as unclaimed and reallocated to the key priority fund account.
What is The Role of the NTF?
The NTA must consider the claim, and must approve the claim if the employer complies with the eligibility criteria.
The NTA must reject the claim if the employer does not comply with the eligibility criteria and must give reasons for the rejection. If an employer’s claim is rejected the employer concerned may provide the additional information, documents or evidence of implementation of training concerned, as required by the NTA, and resubmit the claim to the NTA if the employer complies with the eligibility criteria.

Training Providers

Does a company need to be accredited/registered as a training provider in order to qualify for company training grants?
No.
How can a company register as a training provider?
By contacting the Quality Assurance Division of the NTA at 061-2078 587, or registration@nta.com.na

Key Priority Funding

What is the purpose of key priority funding?
To provide technical and financial assistance to employers, vocational education and training providers, employees, trainees, and other persons or bodies and funding of vocational education and training programmes and projects
What are the approved Key Priority interventions that may qualify?
In the interim, qualifying interventions include:
• Demand-led training programmes,
• Entrepreneurship support among VET graduates;
• Training delivery support for key skills in demand;
• production unit support at VET Training Centres; and
• Capacity support for training providers
What type of interventions will qualify for Key priority Funding?
Examples of potential interventions are as follows:-
• Funding of Apprenticeship and Artisan schemes
• Bursaries
• Internships
• Demand led Training
• Strategic and scarce skills
• Government and National priorities
• SME support
• Sector needs (Industry Skills Committees Priorities)
• Training Provider capacity support
• Disadvantaged / equality training
Who determines funding priorities / allocations?
The Industry Skills Committees and the National Training Fund Council (NTFC) through a strategic planning process and supported by the NTA executive determine the interventions to be funded and make recommendations for approval to the NTA Board of Directors.
Where does the key priority funding come from?
The main portion of Key Priority funds comes from 35% of the levy collected from employers.
What happens to interest, penalties, interest generated by the fund and unclaimed employer training grants?
Interest, penalties, interest generated on levy funds together with unclaimed employer training grants will be transferred to the key priority funding.
Who is eligible to apply for key priority funding?
All legitimately established stakeholder organisations and institutions who comply with NTA established criteria and can implement the vocational related projects in line with good accounting practice and project management principles.
What is the process for applying for key priority funding?
Applications will only be considered following a request for proposals by the NTA. The application must comply with the NTA procedures, notification criteria and requirements. All applications must be accompanied by all documents or information as the NTA may require.
What is the approval process for key priority funding allocations?
The process is as follows:
• NTA Board / National Training Fund Council will review needs and develop criteria in line with Government Priority Needs, Industrial Skills Committees, NTA Strategic Plan, Human Resource Development Plan.
• Request for Proposals will be compiled and approved
• Advert placed in the local media
• Proposals are received and processed through the Tender Procedures
• The Project Evaluation Committee makes recommendation
• NTA EXCO consider the recommendations
• National Training Fund approves recommendation
• Meeting will take place with successful candidate
• Service Level Agreement will be agreed
How are payments made for Key Priority Grants?
• All payments are made in line with Service Level Agreement
• Payments may be made periodically on specific deliverables as outlined in the SLA. M&E carried out to ensure completion/achievement of set deliverable.
• NTA Operations Department to approve on line and manually to National Training Fund
• National Training Fund to process through to finance who will make the final approval and make the payments
• Final Report evaluated against Project Plan and approved
• Monitoring and Evaluation will be conducted by NTF
What is the process for payment of key priority fund projects and programmes? Stakeholders will be required to submit Invoices at the required intervals including an invoice for final payment in line with the service level agreement requirements.
Stakeholders will be required to submit Invoices at the required intervals including an invoice for final payment in line with the service level agreement requirements.
Is there any restriction on the amount available for disbursement?
Grants are subject to availability of funds, the demand on the fund and the general scope of the key priority interventions
When will Key Priority Funding cease?
Key Priority funding will be an annual event throughout the life of the levy scheme. However some projects may be up to three years in duration depending on type, i.e. funding of apprenticeship, bursaries, and some strategic projects. Payments will be made on an annual basis, based on actual and verifiable costs incurred
What is the role of the NTF?
NTF – Levy Collection: Will manage and administer all aspects of levy including the collection of levy, interest and penalties

NTF – Training Advisory: Will monitor, evaluate, validate and approve the training element of Employer Training Grants and Key Priority Funds

NTF – Training Fund: Will manage and administer all aspects of the training fund including Service Level Agreements and Funds Disbursement