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INTRODUCTION
The
Human Resource Development Council, which has been set up under the
HRD Act of 2003, has, interalia, been vested with the responsibility
to administer, control and operate the National Training Fund. This
Fund provides the necessary incentive to employers to develop their
human resources.
One of the main priorities of the HRDC has been to review the
existing system and come up with a new scheme so as to encourage more
effective human resource development at the national level and to
emphasise targeted training while at the same time minimise the
existing loopholes in the previous system so as to provide training
opportunities to the maximum number of employees
The new scheme aims at encouraging a targeted approach to training
whereby the ultimate long term objective would be to develop a
training grant system where all training conducted by firms would be
based on a proper training needs analysis and a corporate training
plan.
Through these amendments the HRDC will also aim at consolidating
existing schemes which would help the labour force to acquire higher
qualifications especially at tertiary levels with a view to upgrading
the quality of the human resource in the country and to provide the
necessary human resource thrusts for successful transformation of the
Economy into a Knowledge Economy.
The HRDC has worked in collaboration with the Mauritius Employers’
Federation and other stakeholders in developing the new scheme . The
new scheme is effective as from 1st August 2006 and is subject to
continuous review at regular intervals.
In order to encourage employers to provide training to a maximum
number of employees, the HRDC offers grants as incentive. Employers
can recover up to 75% of training costs depending on their tax rate.
The training may either be run in-house or externally by training
institutions registered with the Mauritius Qualifications Authority,
(MQA). Grants awarded by the HRDC are based on a cost-sharing
principle, i.e., grants will meet only part of the costs incurred for
training by employers since they are not intended to be a subsidy.
ELIGIBILITY FOR GRANTS
- Only
employers contributing monthly to the levy will be eligible.
- ONLY
TRAINING COURSES AND PROGRAMMES WHICH HAVE RECEIVED THE PRIOR
APPROVAL OF THE MQA/TEC WILL QUALIFY. The training has to be
job-related and must lead to acquisition of new skills.
- As
the objective of the Council is to upgrade the local workforce,
grants are restricted to trainees who are Mauritians or
Permanent Residents of Mauritius
OPERATION OF THE GRANT SYSTEM
- SUBMISSION
OF G1/G2 FORMS
- To
obtain approval of a training course or programme, employers
must fill in application form (Form G1) and these should reach
the HRDC at least two weeks before the
commencement date of the approved course or programme.
- For
In-House courses, employers are requested to seek approval of
the training programme before the start of the course and
submit G1 form as in (a) above.
- After
successful completion of any approved training course or
programme, employers must fill in and submit Form G3, supported
by attached photocopies of all relevant documents as shown
below:
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INSTITUTIONAL
TRAINING
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IN HOUSE
TRAINING
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OVERSEAS
TRAINING
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Invoice and receipts of fees paid.
Individual certificate of attendance
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Evidence of Salaries paid to trainers.
Evidence of expenses on course materials
And/or
Bank Advice if payment is made in foreign currencies.
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Invoice and receipts of
- fees paid
- purchase of air tickets
and/or
Bank Advice if payment is made in foreign currencies.
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» For In House and Overseas Training,in addition to
the above, individual certificate of attendance to the course
including MQA /TEC approval must be provided.
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The National Identity Card Number of all participants must be provided
on Form G3, otherwise application will not be considered
For information regarding time limit for submission of claims, please refer to Circular 4.
For in-house and institutional-based training courses, the HRDC
training grant will depend on the employer’s tax rate as follows:-
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% EMPLOYER’S
TAX RATE
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% HRDC GRANT
REFUND
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15%
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60%
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0%
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75%
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A.Grant Refund Formula per
financial year
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Examples(Annual levy paid and grant
ceiling computation)
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Maximum Grant Refund per year
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(1) Levy contribution of Rs15,000 ( Rs15,000 * 10 =
Rs150,000)/-
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Rs150,000
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(2) Levy contribution of Rs50,000
First Rs20,000 * 10 = Rs200,000
Balance Rs30,000 * 5 = Rs150,000
Total = Rs350,000
Grant refund limited to Rs300,000
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Rs300,000
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(3) Levy contribution of Rs500,000
First Rs100,000 = Rs300,000
Balance Rs400,000 * 2 = Rs800,000
Total = Rs1,100,000
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Rs1,100,000
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(4) Levy contribution of Rs1,500,000
First Rs100,000 = Rs300,000
Balance Rs1,400,000 * 2 = Rs2,800,000
Total = Rs3,100,000
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Rs3,100,000
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* THE HUMAN RESOURCE DEVELOPMENT COUNCIL (HRDC) RESERVES THE RIGHT
TO EFFECT ANY CHANGE ON ABOVE SCHEME AS AND WHEN IT THINKS FIT.
B. Support for Training Needs
Analysis
Firms conducting TNAs will receive a refund of an amount equivalent
to 20% of their eligible Grant Refund subject to a ceiling of :
- Rs
75,000/- if the TNA is conducted by a certified In-house
resource persons approved by the HRDC and
- Rs150,000/-
if the TNA is conducted by an outside firm/consultant approved
by the HRDC
Such refund will be subject to the following:
- Firms
should submit relevant applications to the HRDC and obtain the
approval of the HRDC prior to the conduct of the exercise.
- (a)The
firm must submit the report of the TNA and its Training Plan to
the HRDC before the refund can be effected.
- The
firm will be eligible for such benefits every 3 years
C. Multimedia facilities
Registered training centres having their own/rented building,
infrastructure and training facilities will be eligible for
refund of 50% of the cost on purchase of new multimedia equipment.
The refund will be subject to a maximum total limit of Rs 200,000/-
per training centre. The support will cover, amongst others, purchase
of the following equipment:
· Photocopier,
· LCD projector,
· Computer,
· Overhead projector,
· Scanner,
and such other equipment as may be approved by the HRDC
Such support will be subject to the following:
- The
Registered Training Centre should have been registered with the MQA for at
least 3 years
- The Registered Training
Centre should be dispensing MQA approved courses, one of which
should be of at least 6 month duration.
- Applications
for purchase of such multimedia facilities, accompanied by
relevant documents including quotations, should be submitted to
the HRDC at least 2 weeks before the purchase of such equipment.
- Refund
will be effected on submission of proof of purchase including
receipts
- The Registered
training centre should ensure that such equipment is being used
for training purposes only and should be available in the
training centre at all times.
- The Registered
training centre would be eligible for such benefit every 3
years.
D. Use of Foreign Expertise
Registered training centres can claim up to a ceiling of Rs100,000
per week for a maximum period of 2 weeks in case they bring in
foreign resource persons in scarcity and/or priority areas to conduct
training in Mauritius subject to the following:
- The
training centre will be eligible to bring in up to a maximum of
5 resource persons during any financial year ending 30th June.
- The
same resource person cannot come more than twice during the same
financial year for the same training centre
- To
qualify for the 2 weeks, the resource person should dispense
training for at least 7 days and the total number of training
hours should not be less than 5 hours per day.
- All
applications for use of foreign expertise should receive the
prior approval of the HRDC and training programmes should be
MQA/TEC approved.
- All
exceptional cases will be treated on a case to case basis by the
HRDC.
E.Overseas Training
HRDC refunds 50% of the cost of air fare excluding tax,up to a maximum of Rs20,000 per trainee for an approved course for a maximum period of two weeks.The course fees are refunded as per grant formula.
The number of trainees who will benefit from the scheme will be as
follows:
- Firms
with less than 25 employees will be eligible for a maximum of 3
trainees per year,
- Firms
employing between 25 and 100 employees will be eligible for a
maximum of 5 trainees per year,
- Firms
with more than 100 employees will be eligible for a maximum of
10 trainees per year.
F. Financial Support to individuals following final year
of first Degree and those following Masters Degree programmes
The HRDC will refund up to 20% of the course fees to individuals following the final year of the first degree or those following a Masters Degree from a recognized University and run locally on a part time basis.
The support will be subject to the following:
- For
employees who are on the firm’s payroll and for whom the employer
is contributing the levy and who are sponsored by their
employers, the employer can claim 20% of the fees paid under the
levy grant system.
- In
case of non sponsored employees following similar courses, and
for whom levy is being paid by the employer, the HRDC will
refund directly to the employee 20% of the fees paid.
- All
such payments will be effected upon proof of admission and
payment. Employees should have followed the course for at least
6 months before making any such claim.
For information regarding time limit for submission of claims, please refer to Circular 4.
G. In-House Training
A new scheme is being proposed for refund to be made on training
conducted In-house.
The eligibility for grant refund will be as follows:
- Up
to Rs 25,000/- per day if the course is being conducted by
an In-house registered trainer. The number of trainees in each
batch can be unlimited but should not be less than 10 trainees.
- Up
to Rs 50,000/- per day if the course is conducted by an
external registered trainer. The number of trainees in each
batch can be unlimited but should not be less than 10 trainees.
- Rs
75,000/- – Rs100,000/- per day if the course is conducted by a
foreign trainer. The number of trainees in each batch can be
unlimited but should not be less than 10 trainees.
NOTE: In relation to (i), (ii) and (iii) above cases of firms
having less than 10 trainees in a batch will exceptionally be treated
on a case to case basis by the HRDC and will be subject to the prior
approval of the HRDC.
The training course should cover a minimum of 5 contact hours
per day or else the refund will be prorated except in the case of
courses conducted by foreign trainers. Furthermore, all such training
courses should have received the prior approval of the MQA/TEC.
H. Pre-Operational Training Incentive (POTI) Scheme
The Pre Operational Training Incentive scheme is a programme under
which an advance is offered as incentive to attract investment in
emerging sectors which require a relatively high level of initial
skills.
Under this scheme the HRDC provides an advance equivalent to 50%
of the estimated qualifying training costs during the first year of
operation of firms which are in the process of being set up.
To qualify for such a scheme:
- the
investment project should have been approved by the Board of
Investment,
- the
training should be conducted during a period not exceeding 1
year before operation,
- only
local training programmes and courses which have received the
prior approval of MQA/TEC will qualify. The training has to be
job related and must lead to the acquisition of relevant skills,
- the
advance made by the HRDC will be recouped annually over a period
of 7 years out of the eligible grant limit of the firm.
For the time
being the POTI scheme is applicable for the ICT/BPO sector only.
Examples of Grant Ceiling per
financial year
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Examples ( Annual Levy paid and
Grant ceiling computation)
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Maximum grant refund per year
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(1) Levy contribution of Rs 15,000/-
( Rs 15,000/- X 10 =Rs
150,000/- )
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Rs 150,000/-
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(2) Levy contribution of Rs 50,000/-
First Rs20,000 X 10 = Rs
200,000/-
Balance Rs 30,000 X 5 = Rs
150,000/-
Total = Rs 350,000/-
Grant refund limited to Rs 300,000/-
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Rs 300,000/-
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(3) Levy contribution of Rs 500,000/-
First Rs100,000 = Rs
300,000/-
Balance Rs 400,000 X 2 = Rs
800,000/-
Total = Rs 1,100,000/-
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Rs 1,100,000/
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(4) Levy contribution of Rs 1,500,000/-
First Rs100,000 = Rs
300,000/-
Balance Rs 1,400,000 X 2 = Rs
2,800,000/-
Total = Rs 3,100,000/-
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Rs 3,100,000/
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THE HUMAN
RESOURCE DEVELOPMENT COUNCIL (HRDC) RESERVES THE RIGHT TO EFFECT ANY
CHANGE ON THE ABOVE SCHEME AS AND WHEN IT THINKS FIT.
The duly filled in grant application forms should be
sent to:
The Director
Human Resource Development Council
IVTB House
Pont Fer
Phoenix
Tel.: (230) 601 8125 / 26 / 27
Fax: (230) 6973901
Website: http://www.hrdc.mu
ALL
INFORMATION GIVEN WILL BE HELD IN THE STRICTEST CONFIDENCE AND ALL
DOCUMENTS SENT TO THE HRDC WILL NOT BE RETURNED.
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