Updated: 01 December 2006
DISABILITY: ACCESS TO FUNDING AND BENEFITS
Physical Address: Block A, Eva Office Park, Corner Beyers Naude & Judges Avenue, Blackheath
Postal Address: PO Box 6801, Cresta, 2118 | Phone: (011) 476-8570 | Fax: (011) 476-5756
Call Centre: 086 101 0001 | Web Site: http://www.fasset.org.za | email:
/1.0 Statistics
There are 2 255 973 disabled people in the total population of South Africa (44 819 769) which constitutes 5.03% of the SA population (Source: PriceWaterhouseCoopers, 2005).
The census also indicates that 702 011 individuals between the ages 15 and 65 are unemployed due to illness and disability. It also indicates that a significantly high 99.28% of the disabled that are employable, are unemployed. These figures include 160 000 people that have a secondary level qualification and 65 000 disabled people that have a tertiary qualification (Source: PriceWaterhouseCoopers, 2005).
We can therefore see that suitably qualified disabled persons are unemployed.
2.0 Learnership Benefits
There are a number of benefits to employing disabled persons on a learnership (a work-based and academic training route to obtaining a qualification or designation) programme.
· Tax deduction (claimed from SARS) R 20 000 on signing a previously employed learner (18.1)
· Tax deduction (claimed from SARS) R 30 000 on signing a previously unemployed learner (18.2)
· Tax deduction (claimed from SARS) R 25 000 on completion of a learnership agreement
· The salaries of learners registered on learnerships are exempt from the SDL
3.0 Seta Grants
Certain Setas offer special grants to employers that employ learners from the designated groups (in terms of the Employment Equity Act 1998) on learnerships. Designated groups include black people (African, Asian, Coloured) and disabled people of any population group.
3.1 Fasset Seta
In the 2005/6 Seta financial year, the Fasset Seta offers a cash grant of R10 000, R15 000 or R 25 000 for the employment of a PDI (this includes African men and women, Indian/Asian men and women, Coloured men and women, and all disabled employees) on a Fasset learnership (applicable to employers registered with Fasset employing ≤ 150 employees). This grant will be paid PER LEARNER. An approved Fasset WSP is a pre-requisite requirement for this grant application.
Please consult the Fasset website for eligibility criteria, the deadline dates for submission of this grant, and the grant application form.
3.2 Project Funding
Setas have different grant structures applicable to disabled learners and many Setas fund projects specifically aimed at upskilling disabled learners, however this project funding is usually allocated in line with strategic decisions of the Seta Management Board/Council, and are made annually.
The following Setas (this list is not comprehensive) have instituted social projects to uplift disabled learners:
o Services Seta
o Insurance Seta
o Bank Seta
o Fasset Seta
3.2.1 Example of Fasset Seta funded-project
Access College Accounting Technician Programme for Learners with Disabilities
Project Description
Access College has a long and successful history of providing a high quality education to learners with special needs, and an understanding of the conditions and difficulties that disabled learners face. The Access College Accounting Technician Programme for Learners with Disabilities aims to ensure Access College gains the skills, accreditation and capacity to provide a course that results in competencies demanded by the Fasset sector.
The Associated Accounting Technician (AAT) programme has three levels - Foundation, Intermediate and Technician and the project began with Fasset funding the Foundation Level (Phase One). An integrated approach was adopted and Access College’s specialised understanding of the learners was combined with the skills of Riana E de Bruyn & Associates, who provided the course material and class learning, and a mentorship system, through the TOPP programme, facilitated by Computer Fundamentals. Of the 15 disadvantaged and disabled learners who started the Foundation level in 2001, 12 successfully completed the course, seven gained full or part-time employment and were able to progress to the next two levels of the AAT course. Access College built their own capacity to offer the Foundation level of the learnership to disabled learners and gained accreditation from GAP, the professional body, to present the course on their own.
Following the success of Phase One, Fasset agreed to fund the Intermediate and elements of the Technician stages of the programme. With Fasset’s additional funding for Phase Two and Three, the project was extended to a three-year term. In this manner, Fasset facilitates the supply of much needed skills to the sector and gives previously disadvantaged individuals a real chance at not only growth and self-empowerment, but also to become relevant contributors to the growing financial services sector.
As employment and employability is the central target for all Fasset-funded projects, a key feature of this project will be the placement assistance of these learners in the Fasset sector. Placing disabled learners requires an additional effort in the evaluation of the workplace for its suitability to the specific disability of the proposed employee and the management of this placement, normally facilitated by Access College. The cost of this evaluation and placement management will be born by Fasset for companies registered with Fasset who hire these talented and skilled learners.
3.3 National Skills Development Strategy
The Department of Labour has, as one of its objectives, the development and training of disabled people.
In order to achieve this goal, the National Skills Fund (NSF) may allocate funding from their NSF (comprising 20% of employer contributions to Skills Development Levy) to projects that aim to uplift, train and development disabled people.
The Department of Labour, as the ministry responsible for overseeing Seta performance, require Setas to expend discretionary and unclaimed grant monies in respect of the following targets: 4% disabled, 54% women and 85% black.
4.0 Personal Tax Deductions in respect of Medical Expenses for People with Disabilities
There are a number of income tax benefits payable to disabled people. Disabled persons may cite such benefits when interacting with employers or potential employers.
In terms of the Income Tax Act, 1962 (Act 58 of 1962), Chapter II: The Taxes, Part I: Normal Tax, Section 18. Deduction in respect of medical and dental expenses there are a number of deductions disabled people may take advantage of, such as any medical or dental expenditure (other than expenditure recoverable by the taxpayer or his spouse) necessarily incurred and paid by the taxpayer in consequence of any physical disability suffered by the taxpayer, his spouse or child or stepchild.
This would include the disabled person’s medical aid contribution and any devices purchased in order to improve performance (this is known as ‘Reasonable Accommodation’).
Please see an example below of how deductions may be calculated:
Description / Amount Non-Disabled Employee / Amount Disabled Employee /Salary / 100 000 / 100 000
Allowable contribution to pension / (7 500) / (7 500)
Taxable amount of salary / 92 500 / 92 500
Medical Aid / 0 / (18 000)
Reasonable accommodation (compensation for disability) paid by employee / 0 / (35 000)
Taxable Income / 92 500 / 40 000
25% tax rate on first 12 500 (of total salary of 92 500)
18% tax rate on remaining 80 000 / 12 500 * 25% tax rate = 3 125
80 000 * 18% tax rate = 14 400
Total tax to be paid = 17 525 / 0
Tax rate other / 0 / 40 000 * 18% tax rate = 7 200
Less primary rebate / (6 300) / (6 300)
Total / 11 225 / 12 / 900 / 12
Monthly PAYE / 935.42 / 75
Source: PriceWaterhouseCoopers, 2005.
5.0 Productivity and Costs
Due to the current situation regarding disabled employment, a person with disabilities is likely to regard employment highly and will therefore likely be a highly committed employee (Source: PriceWaterhouseCoopers, 2005).
People’s jobs should be linked to abilities, however many employers are unable to look past the disability of the applicant when considering them for employment. For this reason, there is a consideration that employers could match disabled people in employment to specific occupations. For example, a switchboard could be operated by a blind person, or person with a mobility disability. Call center agents could be blind or be people with mobility impairments.
The ideal is to interview disabled people as one would a person without a disability. Employers generally make allowances for the specific limitations of staff. For example, vegetarians in the workplace require special catering at events. A person with a mobility impairment may require a special chair/seating arrangement as would a person with a ‘bad back’ require a special chair.
In many instances persons with disabilities can perform most duties with appropriate aids. For example, there are blind accountants and advocates who make use of text recognition software and tapes in order to access information. Quadriplegics make use of special mechanical equipment to operate machinery.
6.0 Disability Awareness
It is important for employers to understand the importance of creating an enabling environment for disabled persons. In addition to the social responsibility South Africans have with regards to designated groups, there is business value to employing people with disabilities and implementing employment equity and diversity management in the workplace.
In many instances individuals are not confident in interacting with disabled people. This may cause discomfort and fear when meeting a person with a disability. Some reasons for not being comfortable with employing the disabled include:
· Having no skills to manage them
· Having enough disabled workers
· Not knowing what a disability actually is
· Thinking that the disabled can not do what others can do
· Thinking that the disabled may injure themselves or others
· Thinking that it is costly to employ the disabled
7.0 Legislation
The Constitution of South Africa, 1996
The Constitution serves to protect and promote the rights of people with respect to equality and with respect to human dignity. Affirmative action is provided for. These rights are contained in the Bill of Rights. The Constitution provides for the Employment Equity Act and for the Labour Relations Act.
The Employment Equity Act, 1998
The act aims to eliminate unfair discrimination in the workplace. By implementing affirmative action, the act aims to redress past disadvantages suffered by workers. The designated groups here are blacks, women, and people with disabilities.
Labour Relations Act, 1995
This act contains information on how to fairly terminate an employee’s employment for a variety of reasons. One reason relates to an employee’s incapacity due to ill health which may be a product of a disability or incapacity due to a disability itself.
8.0 Defining Disabilities
Impairment
Physical Impairment refers to a partial or total loss of functioning of one’s body or of part of one’s body. Mental Impairment refers to that which is clinically recognised, it could be a condition or an illness.
Duration
A condition or impairment may be Long Term meaning that it is expected to last at least twelve months. A Recurring impairment or condition is one that is likely to occur again and may be worse the next time it happens. A progressive condition is one which is likely to develop as time progresses and is very likely to get worse with the passing of time.
9.0 Disclosure
It is up to the employee whether to disclose a disability or not. However an employee cannot expect an employer to make provision for a disability if the employer was not made aware of such disability, or if the employer cannot plainly see that a disability exists.
An employer has the right to obtain disclosure from an employee as to the employee’s disability status. The employer also has the right to request an assessment of an employee’s specific disability, in this case the employer is to bear the cost for such an assessment.
Workplace Assistance
An employer may provide workplace assistance to employees who are disabled. This assistance may take the form of support devices such as vibrating devices instead of ringing devices such as a telephone. Assistance may be in the form of communication such as written notes and sign language instead of other modes of communication. Office space may also be rearranged to accommodate a disabled employee.
Assessment of Buildings
Buildings may be modified to accommodate the disabled. In such cases consultation is necessary from disability experts and from environmental experts. The Building Regulations also need to be consulted. Any modifications may be permanent or may be temporary such as a temporary ramp for wheelchairs.
10.0 Other Setas
There are perhaps seven million people with disabilities in South Africa. The Services Seta has two projects to help employ people with disabilities including those with mental challenges. One venture partners the International Labour Organisation (ILO) in training recruitment agencies to handle recruiting the disabled.
The second project involves being a founding member of the Feurstein Foundation for Instrumental Enrichment. This involves a pilot project for mentally challenged job seekers. The Seta plans to publish a member list of recruiters competent in taking on people with disabilities by June 2007.
11.0 Conclusion
People with disabilities are part of the South African economy and in many instances possess skills that may be well matched to many occupations and jobs. However, prejudice and stereotypes in many cases prevents employers from taking on a person with a disability. With correct information, awareness and sensitivity, employers should recognize that disabled people, like any other disadvantaged group in South Africa, may with proper bridging and support will be able to perform in the workplace. Often this support is not required, as disabled people have learned to compensate and make accommodations (often at their own cost) for their disability and operate in their chosen careers.
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Disability: Access to Funding and Benefits