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NQF Requirements Of The Critical Skills List

09/05/2022 in , /by
 

 

Levi SchoolingLevi Schooling
Expatriate Solution Specialist

 

In 1995, the South African Qualifications Authority Act was passed into law and the very first authority was established to regulate qualifications. Later, in 2009, with the aim to reaffirm the necessity for a National Qualifications Framework and to further ensure that various elements of the education and training systems are more effectively comprised, the act was reviewed, resulting in a new act being gazetted.

Modernisation in the macro-environments of technology, politics and economy has necessitated the agility of professionals in the modern workplace. As such, a more efficient education system was required to produce creative, effective, and adaptable professionals, who are capable of working in the modern landscape.

The NQF acts to provide a path through which learners can easily understand the trajectory of their academic careers and would be more inclined to invest in the progression of the same. The theory is that having done so, the NQF would facilitate the improvement of functional and intellection capability in the job market.

The NQF, as it pertains to tertiary qualifications can be broken down below:

  • NQF 5: Tertiary Certificates
  • NQF 6: Diploma Level or Higher-Certificates
  • NQF 7: Degree level or Higher-Diploma
  • NQF 8: Honours degree level
  • NQF 9: Master’s degree level
  • NQF 10: PHD/Doctoral level

With these aspects in mind, the NQF is now the progression metric by which all qualifications are evaluated and certified on. Additionally, regarding foreign qualifications, SAQA makes comparison to South African qualifications, and awards a comparable NQF level for qualifications that would not ordinarily be awarded due to SAQA’s mandate.

In understanding these aspects, we can now correctly scrutinize the Critical Skills Lists. To qualify for a Critical Skills Work Visa, the following would be required:

  • a qualification (relevant to the category specified according to the NQF);
  • a relevant professional body registration (as contemplated in the Critical Skills List and the Department of Higher Education and Training’s Technical Report of 2022); and
  • a firm job offer.

However, an innate disparity has surfaced with the recommendation of these levels, when the draft list was being consulted on and formalised, – is now further seen in practice. The majority of categories on the 2022 Critical Skills List require an NQF 8 qualification which is, essentially, an honours Degree. The problem that lies in that designation is that an honours qualification is a uniquely South African post graduate qualification, that equates to a further year’s study, whereas the rest of the world uses the term as a classification of merit in a class system. What this means is that most applicants would surmise that they qualify for the category, however once evaluated by the South African Qualifications Authority, many come to the shocking realization that they only have a bachelor’s degree in South Africa.

This of course means that those hoping to qualify for those categories with an NQF 8 designation would require a Post Graduate Diploma or master’s degree to be able to qualify for those categories. Which begs the question of why these levels were recommended for many of the categories on the Critical Skills List?

Other questions that may arise are; at which NQF level are you deemed to be functionally competent in a specific profession? What role does experience play in the assessment of one’s competence, and shouldn’t more weight be given to experience instead of qualification? Or perhaps, should there be a way where an applicant of 20 years’ experience can supplement the Shortfall of a single NQF level?

With professional bodies attesting to the competence of an applicant within their experience in the industry, this requirement seems to have fallen by the wayside when considering applications for a Critical Skills Work Visa. Yes, it is still a requirement, but how relevant is it really when an application can simply be declined for a qualification not being at the ascribed level despite the fact that the applicant can be deemed capable in practice?

Expatriate professionals in various industries see these NQF requirements as a hindrance to the application process and have brought their concerns to the attention of the relevant professional bodies. Xpatweb is currently assisting these bodies in a collaborative effort to bring these concerns to the Department of Home Affairs for deliberation on a solution.

As with any release of a new Critical Skills List, these teething problems are always to be expected. However, more work has to be done to find a fair and reasonable solution to these problems and answer the question: “Are such designations in qualifications truly necessary?”

 



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Engineering Occupations Remain Prevalent

25/04/2022 in , /by
 

Jo-lene Da Silva VergottiniJo-Lene Da Silva-Vergottini
Expatriate Solutions Advisor

Inclusion in the list

The Xpatweb annual critical skills survey in 2021 confirmed that engineering skills are of the most sought-after skills in South Africa and employers are looking for highly qualified engineers with many years’ experience. It is not surprising then that engineers were included in the new list, as the demand for their professional skills and experience outweighs the current availability in South Africa.

Also included on the list are technologists and technicians in certain fields of Engineering, however these professions will be required to be registered as professionals in their field with the Engineering Council of South Africa (ECSA), which is the statutory professional body regulating this industry.

Qualifications of paramount importance

As with all other occupations on the new list, the qualification requirements for those in the Engineering field are of paramount importance. Those wishing to apply for any of the occupations under the Engineering section will need to have obtained formal qualifications as high as an honour’s degree, comparable to a NQF Level 8 South African qualification.

This can be a difficult endeavour as an NQF 8 honour’s degree is a uniquely South African qualification, which refers to a 1 year post graduate study. Whereas most institutions globally view it as a form of merit in a class system, for example passing your bachelor’s degree with honours. The requirements for this specific level of qualification thus causes a hindrance for those who wish to apply for a Critical Skills Work Visa.

Skills exodus

As we continue to see South African engineers recruited globally including places like the Netherlands, the shortage of experienced engineers in South Africa will continue to rise. Whilst the new list seeks to assist with the shortage, more should be done to ensure that South Africa produces more engineers in the fields that are so sorely lacking.

It stands to reason then that the South African government should prioritise skills development at the grassroots level to stimulate education in these fields in order to avoid skills shortages of this nature in the future. A possibility for this is a drive by the Department of Basic Education to target those students who are in Grade 9 and needing to choose subjects that they will require to be able to further study in a certain field once matriculated. Currently these students are not given enough information as to the vast number of occupations that they are able to choose from as future careers.

Perhaps a suggestion is that a condensed version of the Critical Skills List be provided to each school and possibly each student, who will then be able to make more informed decisions regarding subject choices for their future studies.  This will ensure that more qualified South Africans enter the job market in the fields and occupations that are critically lacking.



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The New Critical Skills List – Corporate General Manager Is In!

07/04/2022 in , /by

One such occupations on the Critical Skills List is that of Corporate General Manager (CGM). This has been defined on the Critical Skills List as an individual who plans, organizes, directs, controls, and reviews the day-to-day operations and major functions of a commercial, industrial, or other organization (excluding government or local government) through departmental managers and subordinate executives.

This occupation was included on the new critical skills based on the high number of comments requesting inclusion, along with subsequent requests for inclusion by both the Department of Trade, Industry and Competition and the Presidency’s Operation Vulindlela, which provided substantiating evidence that the occupation is indeed in shortage.

The technical report issues by the Department of Home Affairs, read with the new Critical Skills List provides under Annexure 1 different names or specialisations included for the occupations listed on the Critical Skills List. However different titles are not provided for the occupation of Corporate General Manager thus applicants are limited to using the above specified occupation title when submitting their applications.

The new Critical Skills List is highly focused on levels of education that must be met by the applicant to qualify for a Critical Skills Work Visa. Applicants applying under the occupation of Corporate General Manager must submit proof with their application that their qualifications meet the new minimum requirement of NQF level 8, as confirmed and evaluated by SAQA.

The size of the organization is a significant distinction to establish in the case of Corporate General Manager (CGM) and Director. The view laid out in the critical skills technical report is that Critical Skills Work Visas for these occupations could be exploited if the size of the organization is not provided (i.e., individuals who are self-employed, a sole employee and designated as a manger will be able to obtain a CSV). As a result, only those looking for a position in a medium or big company will be considered for a CSV. The size of a business can be evaluated by looking at both the total number of full-time equivalent paid employees and total annual turnover, according to the Department of Small Business Development (2019). As a result, for a person to apply for a Critical Skills Work Visa as a Corporate General Manager the above thresholds must be met.

Although Corporate General Manager is on the new Critical Skills list it has greater limitations that will need to be adhered to such as the applicant’s level of education, the size of the enterprise the applicant will work for and the annual turnover of said enterprise.

We caution applicants and employers in conjunction with your preferred provider, when preparing new applications, to take a careful and considered approach, proactively anticipating challenges during the adjudication process in terms of the new criteria as set out. New applications will be widely open to interpretation, and it is our role when preparing your application, to make it clear to the adjudicator that the applicant indeed qualifies for a visa under the category of Corporate General Manager.



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What You Need To Know About The Critical Skills Technical Report

14/03/2022 in , /by

This resulted in the production of a technical report that included a methodological description of the occupations on the critical skills list, the way in which these professions where chosen and further detail on the processes and requirements that need to be adhered to by foreigners when applying for a critical skills work visa.

Although the majority of this report is devoted to responding to requests for inclusion or deletion from the list, the comments covered a wide range of issues. Part 2 describes the considerations for inclusion and exclusion criteria, as well as how these criteria were applied in conjunction with requests obtained through the public comment process. Further comments on methodology, qualifications, industry body, policy legislation, regulation, and Organising Framework for Occupations (OFO) were also received. Much of this report is devoted to the process of finalizing the list and presenting it in its completed state. Various stakeholders validated this list in Part 3 through the NEDLAC process, which sharpened the “penultimate list” (for confirmation by the DHA Minister) in Part 4.

Whilst the methods to which the critical skills list came about are noteworthy, there are particular points of interest in the technical report that make an impact on the process of applying for a critical skills work visa.

Items that Impact the Process of Applying for a Critical Skills Work Visa

Alternative Titles

Table 6 shows a list of all alternate names for the vocations included in the final CSL. While the Organising Framework for Occupations (OFO) contains most of these specialisations and alternate titles, there are a few titles indicated that are not in the OFO. As a result, the researchers have prepared the following list of all specialisations and alternate titles associated with the final CSL jobs.

Lecturers Included

Annexure 2 of this technical report outlines the fields of study for lecturers as accounting and informatics, agricultural, environmental, and natural sciences, arts-design and social sciences, business studies, commerce, education, management sciences, engineering and the built environments, food service management, health sciences, humanities, information and communications technology, law, medicine and health sciences, science, physics, public management and administration, and theology.

Minimum NQF Level

The view brought forth in the report is that if a position is to be filled via a critical skills work visa, the NQF requirement should tip the scales in favour of South Africans; in other words, non-South Africans should have greater qualification expectations than South Africans.

In keeping with this principle, the researchers have set qualifications criteria in the CSL that are slightly higher than what South Africans are required to practice. Their hope is that this will attract skilled persons from outside while ensuring that South Africans with such skills are not disadvantaged.

With such great importance being placed on these NQF levels it is imperative that foreigners prove that their qualifications fall withing these requirements when submitting their applications.

Professional Bodies

Stakeholders and comments to the public feedback period emphasized two main points in addition to the specific proposed modifications. These are things that the DHA should think about – Clarifying in the report that the professional bodies named are not necessarily the only professional bodies to whom foreign nationals can apply for professional membership; or simply removing references to specific professional bodies from the CSL because their inclusion could be anti-competitive. In this case, the DHA could check the whole list of professional bodies registered by the South African Qualifications Authority against its CSL rules on professional bodies (SAQA).

Currently, the regulation governing the publication of the CSL requires that occupations be covered by a SAQA-registered professional body (statutory or non-statutory). Considering this regulation, the researchers took the following steps to ensure that no SAQA-registered professional body was left out of the study:

  • If a person is required by law to be licensed to practice in a certain occupation, the CSL will show the SAQA-registered professional organisation or bodies that offer that licensure.
  • If a person is not obliged by law to be licensed to practice in a particular occupation, the CSL will show that there are no professional organisations associated with that occupation (of which there may be many). In this case, the SAQA website has a database of all SAQA-registered professional bodies relevant to the critical skills list.

Corporate General Manager

The technical report has made significant distinctions in the case of Corporate General Manager (CGM) and Director. The opinion reported is that these jobs could be exploited if the size of the organization is not provided (i.e., individuals who are self-employed, a sole employee and designated as a manger will be able to obtain a critical skills work visa). As a result, only those offered employment in a medium or large enterprise will be considered for a CSV. The size of a business can be evaluated by looking at both the total number of full-time equivalent paid employees and total annual turnover, according to the Department of Small Business Development (2019). As a result, in order to apply for a CSV as a CGM or Director, both of the criteria listed must be satisfied.

How to Approach your Critical Skills Visa application

Foreign applicants should make use of the guidelines set out in the technical report when compiling their applications for a critical skills work visa as the report is concise in its description of what the Department of Home Affairs will be considering when adjudicating such applications.

We are recommending a careful and considered approach, proactively anticipating challenges during the adjudication process in terms of the new criteria as set out.

We caution applicants and employers in conjunction with your preferred provider, when preparation new applications, to assess and determine best suited category to apply under and the documentation included to demonstrate the candidate qualifies in the category selected. New applications will be widely open to interpretation, and it is our role when preparing your application, to make it clear to the adjudicator that the applicant indeed qualifies for a visa under the new Critical Skills list.



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Why Emigrating To The Netherlands Is Attractive To South Africans

14/03/2022 in , /by

Not only is the Netherlands attractive in terms of their work / life balance, but the Dutch government offers enticing tax incentives for highly skilled migrants, especially in the financial, engineering and information technology (“IT”) fields.

According to Rob Ridout, from Job Search International, skilled South African professionals are in high demand.

“Highly skilled South African professionals are seen as assets to foreign employers. South Africans should not be hesitant to apply for international vacancies, especially in the Netherlands,” explains Ridout.

Why Netherlands?

Covid-19 and its far-reaching effects has not deterred the economic growth of the Netherlands. According to the Central Bureau of Statistics (CBS), the economy growth rose to 4.8% for 2021. With the economy growing at such an exponential rate during a pandemic, the Netherlands has now been facing a different type of dilemma, job vacancies are now outnumbering the number of unemployed people. This means that there are roughly 123 vacancies to 100 unemployed people according to the CBS.

“One of the major success stories, that shows that the Netherlands is the global hub for tech, is that Dutch company ASML recently sold their advanced chipmaking tool to Intel for more than $340 million with even more orders being placed by other companies. This in turn will create many more job opportunities for highly skilled migrants in the financial, engineering and IT arenas”, says Rob Ridout.

It is not just the growing pool of vacancies that’s attractive for South Africans. The Dutch work / life balance is another contributing factor to why the Netherlands is seen as an emerging hub for skilled migrants. The Dutch put a lot of emphasis on “family / leisure time” and working hours are fewer than in most European countries. Most Dutch professionals work on average 35 hours per week where a few of those days can be used for remote working.

The Dutch government has invested a lot in providing enticing attractions with regards to research and development (R&D) tax incentives that is offered and boasts a strong digital infrastructure that is renowned for their openness to multidisciplinary thinking. The Netherlands is seen as the gateway to the European R & D arena with 10 unique campuses or “incubators” that each specializes in a host of applications that include agrifood, artificial intelligence and quantum technology.

Tax benefits of working in the Netherlands

There is also a 30% tax ruling that is another attractive incentive for expats. This ruling is aimed at highly skilled migrants that have expertise in areas that are not easily found in the Netherlands.

What the 30% ruling entails is that an employer may compensate you for “extraterritorial costs” equivalent to 30% of gross salary untaxed. But there are certain specifications that highly skilled migrants need to meet before they can qualify for this incentive.

According to the Dutch Tax Administration, employees must meet the following conditions –

  • The employee is in paid employment.
  • The employee has specific expertise that is not or hardly found in the Dutch labour market.
  • The employee was recruited outside of the Netherlands.
  • The employee is in possession of a valid decision from the government.

Exiting South Africa correctly

Once the highly skilled South African has found employment in the Netherlands, important steps need to be taken to ensure that they remain tax compliant with SARS.

“The first important question that needs to be asked is whether one is going to emigrate with the intention to permanently stay in the Netherlands, or if that person will come back to reside in South Africa. And the second vital factor is whether the person will be an employee or independent contractor. These are criteria that will determine what exemption or route you can take in terms of tax residency and foreign income”, says Victoria Lancefield, General Manager for Tax Residency & Financial Emigration at Tax Consulting SA.

All South African tax residents need to submit tax returns to SARS on an annual basis to declare their South African or foreign income, if foreign income was made then the taxpayer needs to claim an exemption on foreign earnings.

Foreign earnings will be taxed on the surplus of R1.25 million at the marginal income tax rate which could be as high as 45%. Even if the tax resident qualifies for an exemption, a tax return needs to be submitted.

Tax residents need to understand that even if they cease their South African citizenship, their tax residency will remain because citizenship falls under the jurisdiction of the Department of Home Affairs and tax residency falls under the jurisdiction of SARS, the two do not align.

What are your options?

Certain processes are needed to formally cease tax residency so that SARS does not come knocking on your door.

Victoria Lancefield states that, “there are two options available to South Africans thinking about emigrating. They can either undergo the financial emigration process if they are emigrating with the intention of not coming back to reside in South Africa, or they can apply the Double Tax Agreement (DTA) between two countries. The DTA route is undertaken when the professional has the intention of coming back to reside in South Africa in the future”.

It can be an arduous process to start the financial emigration or DTA process and that is why it is important for one to consult a professional and experienced tax practitioners and tax attorneys to help them alleviate the tax burden while they get ready to move overseas to further their careers.



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