Maximize Your Training Budget: How ZIMDEF Rebates benefit you

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Maximize Your Training Budget: How ZIMDEF Rebates benefit you
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Maximize Your Training Budget: How ZIMDEF Rebates benefit you

The Zimbabwe Manpower Development Fund (ZIMDEF) plays a crucial role in financing human capital development, primarily through the collection of a training levy and the provision of rebates to compliant employers.

Here is a breakdown of the key aspects of registering through ZIMDEF and obtaining rebates:

 ZIMDEF Registration and Levy

  • Statutory Requirement: Registration with ZIMDEF and payment of the levy is a statutory requirement for all registered companies operating in Zimbabwe. Failure to comply is a criminal offense.
  • The Levy: Employers are required to remit a 1% Training Levy calculated on their monthly gross wage bill. The gross wage bill includes salaries, wages, cash in lieu of leave, bonuses, employer’s pension and medical aid contributions, allowances (cost of living, housing, etc.), commissions, the value of benefits (free food, quarters, etc.), and directors’ fees.
  • Payment: The levy is typically due on or before the 15th of the following month, based on the preceding month’s wage bill. If the wage bill is in foreign currency, the levy must be remitted in the same currency (pro-rata for mixed currencies).
  • Registration Process:
    • Obtain a ZIMDEF Employer Registration Form from ZIMDEF offices or their website.
    • Complete the form with details like the business name, legal form, industry, addresses, and wage bill information.
    • Submit the completed form along with certified copies of the Certificate of Incorporation and a valid Tax Clearance Certificate (ITF 263).

Processing ZIMDEF in Belina Payroll

Once registered with ZIMDEF, the next step is to set up the contribution in your payroll software to ensure accurate calculation and compliance.

  • Automated Calculation: Belina Payroll allows you to set up the ZIMDEF contribution. The software will automatically calculate the required 1% contribution on the employee’s gross wage bill. Follow the steps in our Help and Manual guide for this process.
  • Employer Contribution: This contribution is processed as an employer expense – it is not deducted from the employee’s salary.
  • Reporting Made Easy: You will be able to export a dedicated ZIMDEF report directly from the system, which simplifies the monthly submission and declaration process to ZIMDEF.

ZIMDEF Rebates

Rebates are a mechanism through which ZIMDEF reimburses compliant employers for qualifying expenditure on training their human capital.

  • Eligibility:
    • The employer must be registered with ZIMDEF.
    • The employer must be up to date with their 1% Training Levy payments.
    • The employer must have incurred qualifying expenditure on human capital development as prescribed in ZIMDEF’s circular letters or guidelines.

What Qualifies as Training Expenditure?

ZIMDEF outlines several categories of allowable costs and activities. This may include, but is not limited to:

  • Apprenticeships / Indentured training: ZIMDEF may reimburse the wages paid to apprentices (up to prescribed minimum rates) for specified periods (e.g. first two years), including incidental costs.
  • Release time for staff undergoing upgrade courses: If employees are released from duties to attend recognized training or courses, wages paid during that time (or a portion) may be claimable.
  • Trade testing facilities: Employers offering trade testing (i.e. assessments) may be compensated for costs incurred, at a rate agreed with relevant authorities.
  • Part-time lecturing / secondment to training institutions: If your employees lecture at national training institutions, you may claim for hours released, endorsed by the institution.
  • Courses offered by recognized professional bodies or institutions: ZIMDEF accepts claims for staff completing courses with institutions such as HEXCO, CGAIZ, ZIM, IIZ, SAAA, IAC, IPS, CII, IBS, CIT, PRI, etc.
  • Industrial attachment / internship allowances: Expenditure on student attachments (stipends, supervision, allowances) may qualify under certain conditions. This is especially relevant for organizations hosting students from technical institutions.

Rebate Application Process:

  • The process involves filling out specific Rebate Forms (which can usually be downloaded from the ZIMDEF website).
  • These forms require details of the training conducted, the costs incurred, and proof of payment for both the levy and the training itself.
  • The application for a rebate is submitted to ZIMDEF for review and approval against the set criteria and budget.

The specific criteria, forms, and allowable expenses for rebates can be updated by ZIMDEF. Always refer to the latest ZIMDEF circulars, notices, and documentation for the most accurate and current information. You should contact a ZIMDEF office directly for specific guidance on current rebate criteria. By Ashlene Moyo