Inani / FASA employer benefits

After sixteen years of INANI working with the Seta’s on behalf of FASA, the ServicesSeta MoU with FASA was signed two weeks ago and is also now moving forward as part of the ServicesSeta SMME’s development project, amongst and as part of other upcoming initiatives to be discussed and finalised with the ServicesSeta.

The NQF level 6 Franchise Manager Occupational Qualification is now registered, with the qualification’s NQF level 5 being targeted next and placed on the ‘priority shortlisted’ for development. 

FASA’s partnership with Inani Projects, the talent incubator and business enabler that works with and represents a number of government and employee associations, has been active for the last sixteen years and recently both parties signed an MOU that has made INANI a strategic partner to support FASA with its various initiatives for its members. The partnership relationship benefits between INANI and FASA present a number of benefits to the FASA members on various initiatives for its members including talent and business enablers that work with and represent a number of government and employee associations. FASA has also nominated INANI as a FASA representative on several boards including the Services Seta, Food Bev Seta & BUSA.

Through the partnership, INANI can provide FASA Members with the following benefits:

1. Recruitment

We can provide recruitment of candidates through our Talent incubator for free. Recruitment can be done for professionals as well as entrepreneurs where franchising is being considered.

Our recruitment includes that of differently-abled youth and adults that are able to function well within an employer and contribute to the economy.

2. 12H Tax Rebate Benefits through implementation of Learnerships

Section 12H of the Income Tax Act 58 of 1962 grants an allowance to employers in respect of ‘registered learnership agreements’. A registered learnership agreement is defined as one which is registered in accordance with the Skills Development Act 1998 and is entered into between a learner and an employer before a date specified in the Act.

INANI help employers with to tap into the 12H tax benefits to the employers who get involved in learnerships as follows:

Employers will be able to claim a tax rebate for hosting the learnerships which is know as the 12H rebate. An amount of R80,000 rebate can be claimed per each candidate employed through a learnership and R120,000 for differently-abled learners. Section 12H of the Income Tax Act (the Act) provides for an allowance to employers in respect of qualifying ‘registered learnership agreement'(s) entered into between the employer and employee. The allowance is intended as an incentive for employers to train employees. Tax Incentives (SARS) here are on 2 levels.

R40,000 commencement and completion allowances for learnerships and apprenticeships
R60,000 commencement and completion allowances for learners with differently-abled learners

Tax Incentives are deductions on your taxable income that you can claim for each learnership candidate that you have in your employment, once at the start of the learnership, and once again at its completion. These incentives are legislated in section 12H of the Income Tax Act, 58 of 1962 and the amendments made in January 2010.

Employers can claim the monthly Employment Tax Initiative (ETI) for all candidates that they employ who are between the age of 18 and 29. Employment Tax Incentive (ETI) allows South African businesses to claim a PAYE tax rebate for employees between the ages of 18 and 29 who earn a gross salary of less than R6500 per month. The ETI aims to boost the employment of young job seekers.

An employee is eligible for the ETI if they:

Work for the business helping with business operations, and they are paid for their services;
Are recorded in employer records under the provisions of Section 31 of the BCEA;
Are paid at least the minimum wage;
Are employed in a special economic zone, or they are between the ages of 18 and 29, and they possess a valid South African ID, a valid permit for asylum seekers, or an ID as defined by Section 30 of the Refugees Act.

3. BBBEE Benefits

Employers can improve their BBBEE scoring which include numbers for differently able candidates. What are the benefits of B-BBEE in South Africa?
One of the decisions that business owners in South Africa must make is whether or not to participate in the B-BBEE (Broad-Based Black Economic Empowerment) process. While an entity is not penalised for failing to embrace broad-based transformation or for having a low B-BBEE score, it is unlikely to be awarded contracts and licences by the government and is less likely to be awarded contracts in the private sector. No business is forced to participate in B-BBEE. It is a voluntary process.

The following are some benefits that B-BBEE holds for the South African economy:

Skills Development – Learning and training provided in formal, non-formal and on-the-job settings.
Employment Equity – Hiring practices that encourage fair representation of members of minority groups, women and individuals who were likely to suffer discrimination.
Preferential Procurement – The procurement of goods and services from local, black-owned suppliers.
Enterprise Development – Investing time and capital in helping black people establish, expand or improve business.

4. Other Benefits

FASA Members can increase their productivity through increased number of employees available for selection from our pool of talent
FASA Members will be contributing to the reduction of unemployment in South Africa which in turn can improve the economy.
FASA Members will have a skilled pool of talent as a pipeline for further employment during brand expansions.
FASA Members have access to graduates, interns and work integrated learners as part of various programs implemented by INANI.

FASA and INANI will be communicating more details on the qualification details, the upcoming projects and participation, the SMME roadshows, MoU, and the next projects in the near future.  For more information contact Nico Botha at nico0836601458@gmail.com or 083 660 1458