The Skills Development Corporation: Everything you need to know about Stipends

Understanding Stipends: A Guide by The Skills Development Corporation

“Learnerships contribute positively to the lives of students. They create employment opportunities for the unemployed and improve the career prospects of those employed. While not all have found employment yet, or in the industry they trained in, it does improve the employability in the long run, as they become multiskilled, learn interpersonal skills and become confident and hopeful for the future.” – Voice of the learner.

According to the publication, Voice of the learner a lot of young new entrants in the workplace struggle with the long working hours required as part of the workplace training, whilst employers see this as training hours, learners see the effort /output to those of permanent employees and some have certain reservations in receiving the stipend instead of a full salary. Both the learners and the employers have been quoted saying that some employers misuse learnerships to get cheap labour for a period of time.

When you hear the word learnership, internship or skills programme, you’ll often hear a word followed by it which is Stipend. Perhaps in order to deep dive into understanding what stipends are about. Let’s define it. What is a stipend?

A stipend is a small allowance or monthly payment given to learners while they complete the learnership or training programme. This is not a basic salary. It is meant to help the student to cover their basic living expenses, this being transport, food and other day-to-day expenses during their training period. In short, this stipend money helps the learner focus on learning as well as developing your skills without taking on the worry of financial pressure.

Stipends in South Africa make opportunities accessible to those that would have never been afforded the chance to train for free. Learnership stipends also motivate learners into committing to the full duration of their learnership, whilst also encouraging participation in all programmes that have a set output to employment.

Who pays the Stipend?

The learnership stipend is paid either by the employer or the sponsor, as an accredited training provider, SDC has sponsors that request the organization to recruit legible learners for learnerships. The SETA (Sector Education and Training Authority) also participates as most organizations, whether small or generic sized, execute this payment since it forms part of the company’s youth in skills development and may also contribute to their Tripple BEE scorecard.

How and When Is It Paid?

Most institutions or host employers pay stipends monthly, similar to us here at The Skills Development Corporation, a stipend is paid exactly like how a salary is paid. The money is usually deposited directly into your bank account, so it’s important to have one in your own name before the programme begins. At SDC we have great relationships the well trusted banks in order to assist learners who might not have a bank account when beginning with our learnerships.

A learner typically has to attend classes, complete tasks, and maintain good attendance records to continue receiving your stipend each month.

Can Stipends Be Taken Away?

Yes if a learner:

Stops attending training or work
Fails to meet performance or attendance requirements
Is found guilty of misconduct

In such cases, the stipend may be reduced or stopped entirely. This ensures that only committed learners benefit from the programme.

In Conlusion, The Bigger Picture: A Step Toward Employment

While a stipend may not be a large sum, it represents a bigger opportunity, chance to build your career foundation. Learnerships, internships, and training programmes that pay stipends often lead to permanent employment once the programme ends. Hence, we advocate for a great attitude towards a stipend with our learners, because a stipend is mean to financial support while you invest in your future, daily.

At The Skills Development Corporation, within four months of cancellation by the learner let’s say in a case where the learner has dropped out, we would normally advise the sponsor to have a replacement.