SKILLS DEVELOPMENT

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Skills Development

Companies must obtain a BBBEE level to do business with other companies or do business with the government. Current BBBEE scoring contains 25 points for skills development. Skills is a priority element. If the company does not score at least 40% of the 20 points (excluding the 5 bonus points) they will automatically drop a level on BBBEE.

Different BBBEE scorecards
There are various BBBEE scorecards applicable to different sectors. The applicable scorecard will depend on the SETA with which the company is registered, or where the main revenue stream is coming from. A company will fall either under Generic or QSE if they cannot be allocated to any other SETA

Skills Requirements
A company cannot claim any points for skills if the following are not in place:
• Preparation and proof of submission of workplace skills plan (WSP)
• Preparation and proof of submission of annual training plan (ATR)
• No mandatory training (legal required training for example health and safety) can be calculated for skills points

Black people
The code refers to black people. Black people are categorized into the following groups:
• African
• Indian
• Coloured
• Disabled people
The code refers to disabled people. Disabled people include those who:
• Have a physical or mental impairment
• This impairment is long term or recurring
• This impairment limits their prospects of entry or advancements in employment

Skills Expenditure
The company must spend 6% of leviable (skills development levy) payroll on training. This training includes the following:
• Spend on black people
• 85% on accredited course (Category B, C, D or E) Please see below for category explanations
• 15% can be on non-accredited courses (other categories)
• This 6% must also be split according to the economically active population (EAP) published by STATS SA
The leviable amount includes the following:
• Normal salary
• Overtime
• Leave pays
• Bonuses
• Commission
• Lump sum payment

Learnerships numbers of unemployed black people as percentage of total employees
The company must register 2.5% of number of unemployed black people as a percentage of total employees on learnerships. The company must basically do the same number of unemployed learners as employed learners in the same race split.

Number of black people absorbed at end of learnership
The company must endeavor to absorb the unemployed black people on learnerships at the end of the learnership. A maximum of 5 bonus points is granted if the company absorbs the learners. These bonus points are allocated according to the percentage of unemployed black learners absorbed at the end of the Learnership.
For example: 5 unemployed learners were sponsored to complete the Learnership, just one gets absorbed upon completion. The company will earn 1 bonus point out of the maximum 5 available bonus points.

 

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