BEE Skills Development

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Skills Development in the BEE context refers to a customized contribution to the development of core, scarce and critical skills of black people.  These contributions include internal and external training initiatives as well as direct and indirect training costs.

 

The Essence of Statement 300: The General Principles for Measuring Skills Development

The Skills Development Scorecard allocates points for

  • Skills Development spend on learning programmes for black people in general, black unemployed people and specifically black employees with disabilities;
  • learnerships, internships and apprenticeships for black people in general and specifically black unemployed people;
  • the absorption of black people into the workforce of the measured company or into the industry at the end of learnership, internship and apprenticeship programmes.

 

The Skills Development Scorecard

The Skills Development Scorecard constitutes 25 points towards the BEE Scorecard. Generic companies (companies with an annual turnover of more than
R50 million) need to spend 6% of their payroll (leviable amount) on BEE Skills Development. Points on Skills Development are earned as follows:

Indicator Points Target
Skills Development Spend
(a) Skills Development expenditure on learning programmes for black people as a percentage of leviable amount 8 6%
(b) Skills Development expenditure on learning programmes for black employees with disabilities as a percentage of leviable amount 4 0.3%
Learnership, Apprenticeships & Internships
(c) Number of black people participating in learnerships, apprenticeships and internships as a percentage of total number of employees 4 2.5%
(d) Number of black unemployed people participating in training as a percentage of total number of employees 4 2.5%
Total 20
Bonus Points
(e) Bonus points for the number of black people absorbed by the measured company or the industry at the end of the learnership, apprenticeship and internship programmes 5 100%
Total 25

 

Key measurement principles

A company receives points on the Skills Development scorecard only if it

  • has submitted its Workplace Skills Plan, Annual Training Report and Pivotal Report which are SETA approved.
  • implements a priority skills programme generally, and more specifically for black people.

The 6% compliance target for skills development spend on black people in general includes external training expenditure for unemployed black people.

A company needs to develop a trainee tracking tool in order to score the bonus points for Skills Development.

The Revised Codes of Good Practice have elevated Skills Development to the status of a priority element and have set the achievement of a sub-minimum of 40% of the targets set out in the Revised BEE Scorecard. Should a company not achieve the sub-minimum target, its BEE status level will be discounted by one level down.

Skills Development expenditure arising from informal and workplace learning programmes cannot represent more than 15% of the total value of Skills Development expenditure.

Salaries or wages paid to an employee constitute Skills Development expenditure if the employee participates in learnerships, apprenticeships or internships.

Mandatory sectoral training does not qualify as Skills Development contribution.

Training outside South Africa is measurable if it meets the South African Qualification Authority requirement for recognition.

 

Legitimate training expenses

Legitimate training expenses include the following:

  • Cost of training materials
  • Cost of trainers
  • Cost of training facilities, including costs of catering
  • Scholarships and bursaries
  • Course fees
  • Accommodation and travel
  • Administration costs such as the organisation of training including, where appropriate, the cost to the measured entity of employing a Skills Development Facilitator or a training manager

Training expenses for accommodation, catering and travelling (non-exhaustive) cannot exceed more than 15% of the total value of Skills Development expenditure.