Unlocking Value Through Learnerships: The Opportunity for Members of Master Builders KwaZulu-Natal

In a competitive construction environment, companies are constantly seeking ways to reduce costs, improve productivity, and build a skilled workforce that can deliver quality outcomes. One of the most powerful and under-utilised tools available in South Africa is the tax incentive under Section 12H of the Income Tax Act No 58 of 1962 (commonly referred to as the “learnership tax incentive”). This article outlines the benefits of Section 12H from both financial and human‐resource perspectives and shows how engaging with the learnership programmes offered by the Master Builders KZN Institute of Learning can position your company for lasting advantage.

What is Section 12H and how does it work?

Section 12H is a tax incentive introduced by the South African Government to encourage employers to participate in registered learnership agreements. These agreements are formal contracts between an employer, a learner and a registered training provider (via a Sector Education & Training Authority, SETA) under the Skills Development Act 97 of 1998. (South African Revenue Service)

• The incentive comprises two parts:
1. Commencement allowance
2. Completion allowance

Financial Benefits for Your Company

From a cost / tax perspective, participating in Section 12H learnerships can deliver significant benefits:

Human Resource Benefits: Building Capacity and Retention

1. Developing a pipeline of skilled talent

2. Improved employee engagement and loyalty

3. Enhanced productivity and quality

4. Diversity, transformation and B-BBEE alignment

5. Succession planning

The Master Builders KZN Institute of Learning provides an ideal partner for companies looking to leverage Section 12H learnerships.

1. Accredited training provider: Master Builders KZN Institute of Learning is ACCREDITED by CETA and QCTO.

2. Construction‐specific focus: Programmes are tailored to relevant skills, supervisors, occupational health & safety, site management and entrepreneurship within construction contexts.

3. Full lifecycle support: Your company can plug into an end-to-end solution: recruit learners, train through the Institute and embed them in your business.

4. Practical value for clients: Achieve both tax savings (via Section 12H) and build a workforce aligned with your company needs.

To harness the benefits of Section 12H, partner with the Master Builders KZN Institute of Learning, your company gains access to accredited, construction‐focused learnership programmes that align with the requirements of Section 12H. The result: you enhance your tax position, up‐skill your team, and strengthen your business for the future.

Contact the Association for further information at training@masterbuilders.co.za

Hannah Moodly  | Training Consultant