How is the Training Levy calculated?
Following consultation with employers, the ECITB recommends the rates of training levy to the Secretary of State and to Parliament for approval. A Levy Order is then passed which sets out the rates of training levy to be applied and provides the ECITB with the authority to raise a training levy.
All establishments on the ECITB's Register of Leviable Establishments are required by law to complete an annual Statutory Manpower and Payroll Return (see Relevant Documents). The information provided on the Return enables the ECITB to assess the amount of training levy payable (if any). In particular, the Return includes a declaration of payments made to employees and labour-only personnel during the period 6 April to 5 April. The training levy is calculated on the basis of the declaration. The Return also provides the ECITB with information on employment levels in the industry.
In each establishment, workers working mainly on site and all other workers are required to be declared separately. Training levy will be assessed on the total gross wages paid to employees and the total gross payments made to contract staff hired under labour-only agreements.