B-BBEE | Skills Development
B-BBEE
- Redeeming your Skills Development spend
- B-BBEE points which vary dependent on intervention
- Tax benefits
- Community support and development – it’s a great way of giving back
Skills Development
Skills shortages are a key threat to the future growth of South African businesses. Upskilling the existing workforce is vital for securing a business’ future and ensuring it remains competitive. If you or your employees are well trained, they’ll be more productive, leading to increased efficiency, and higher profits for your business. One of the major benefits of a learnership to a company is the impact on the skills development aspect of your B-BBEE scorecard.
CTU Training Solutions has B-BBEE experts available to assist in ensuring that learnership interventions are implemented in a manner that maximizes the B-BBEE scorecard. Points are based on a Generic Scorecard. In many aspects, a company could earn points under employment equity for black people.
The skills development element requires that 6% of the annual payroll is spent on black employees. The thresholds for classification as an Exempted Micro Enterprise (EME), Qualifying Small Enterprise (QSE) or Generic Entity are as follows:
EME:
Annual Turnover under R 10 million,
exempt from BEE
QSE:
Annual Turnover under R 10 million,
exempt from BEE
Generic (Large) Entity:
Annual Turnover under R 10 million,
exempt from BEE
For a Generic Entity, in total 6% of the leviable amount should be spent on training specified in the Learning Programmes Matrix for black people. At least 0.3% of the leviable amount should be spent on training specified in the Learning Programmes Matrix for black people with disabilities. Learnerships, apprenticeships or internships for black employees and black unemployed people are required for a Generic Entity. The target is 2.5% of the entity’s total workforce for black employees and black unemployed people. The Economic Active Population (EAP) targets are applied to each indicator for the Skills Development element for a Generic Entity. For a QSE, in total 3% of the leviable amount should be spent on training.
As per the B-BBEE Learning Programme Matrix, learnership programmes fulfil the requirements of B, C and D categories – therefore ensuring that the total amount of Training Force invoice and salaries paid to employees on the learnership programme is recognised as part of skills development expenditure which makes the 6% target more attainable. Bonus points – an additional 5 points available upon the successful employment of unemployed youth (18.2’s).
