Training levy set to squeeze money out of employers

Employers will be forced to fork out more money as the government finally gazetted the Vocational Education Training Levy and started the process of registering eligible companies, as defined by the act controlling vocational education. The registration process started earlier this month and will run until 27 February 2014.
“As per Section 36 of the VET Act of 2008, the Minister of Education has already informed employers of their intention to impose the VET Levy.” said the Acting Chief Executive Officer of the Namibia Training Authority (NTA), Ester Nghipondoka.
The Namibia Training Authority is to collect the VET Levy from all employers with an annual payroll of N$1 million or more at a levy rate of 1% of which such employers are required to submit payroll returns to the NTA on a monthly basis.

“The only companies exempt are the State, Regional Councils as defined in Section 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 the public” stated Nghipondoka adding that employers had already been invited to make representations to the minister in response to the information on the NTA’s intention to impose the levy. Many employers had already submitted their responses.
“All the eligible employers are to embrace the VCT levy with a sense of ownership towards establishing a source of financing for technical and vocational education and training in our country” said Nghipondoka encouraging all relevant employers due register by the due date.
She highlighted the importance that eligible companies should register as it is an important national project. She warned companies that have registered but do not comply with the set rules, they would face a 10% penalty on the outstanding amount accumulating from the date the submission is due. “We are confident that the funds generated through the VET Levy will assist us in the development of national training capacities and significantly boost the financing of our country’s training needs” concluded Nghipondoka.