THE VOCATIONAL EDUCATION LEVY

Who should register? All employers who are operating within the borders of Namibia with an estimated annual payroll of N$1,000,000.00 or above must register with the Namibia Training Authority.

  1. When must employers register? Employers should register with the NTA on or before 27 February 2014.
  2. How should eligible employers register? Employers can register online using the link on the website of NTA or submit a registration form at an office of the NTA; or instruct FCS to attend on your behalf.
  3. Registration form: Available as a download on www.nta.com.na; or register online. (have a scanned copy of proof of bank account ready)
  4. Registration fee for employers: NIL
  5. Registration fee for training providers: N$ 3000.00 on application
  6. Validity of training providers registration: the registration is valid for 2 years for training providers who are not accredited with the NQA.  A Re-application fee of N$3000.00 applies for these providers.
  7. Certificate of registration: A certificate of registration will be provided and this must be displayed in a prominent place at the premises of the Training Provider.
  8. Entities, exempt from the VET Training Levy: the state; regional councils; charitable organisations; public and not for gain educational institutions; faith based organisations; Institutions and employers can apply to the Minister for exemption consideration
  9. Levy Financial Year: The Levy Financial Year commences on 1 April 2014 and ends on 31 March 2015, and continues each year thereafter.
  10. Levy rate: The Levy rate is 1% of an Employer’s Total Payroll.
  11. How is the Levy calculated? The Act regulations are unclear whether the levy must be paid on actual or estimated payroll; the NTA website also provides conflicting information. The intention is likely that 1% of actual payroll, as defined, should be used for purposes of calculating the amount to be paid.
  12. Interest and Penalties: Interest and penalties at 10% will apply for non-payment or unpaid levies.
  13. First Levy payment date: The First levy payment is due on or before 20 May 2014.
  14. Monthly payment date: Employers must pay on or before the 20th of each month.
  15. Submission forms: A monthly form must be submitted online or manually at the NTA with proof of payment, on or before the 20th of each month.
  16. How is payroll calculated? The total cost would, in our interpretation, include:
    • all basic salaries;
    • overtime, bonuses, commissions and similar earnings, but excluding any reimbursement of expenses borne by the employee on behalf of the employer;
    • Company contributions to a Pension fund, Medical Aid fund and similar;
    • Fringe benefits: What is further unclear is the value of fringe benefits to be included, such as free meals at the workplace or housing in an employer-owned property and the like; or any other benefit which cannot readily be measured in monetary terms. The NTA indicated at a recent workshop that the employer should use a “realistic” amount.
    • director/member employment related remuneration: Included would also be the cost paid to a director or a member of a CC; insofar as the payment relates to an employment related remuneration. Directors fees for attending board meetings for example are earned through the holding of office, not by way of employment. Particular care must be taken when it comes to the declaration of bonuses or say members salaries (usually done once a year) which would need to be included in the levy calculation in the correct period. A profit-share or dividend would not have to be included in the levy calculation, unless this commitment arises as a condition of employment.

 VET information brochure