The amendments to the Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice has brought some drastic changes, especially to the Skills Development element. For a Generic Company to obtain points for Skills Development under the amended Codes of Good Practice, advisors need to calculate the amounts spent on Skills Development on each sub-race and gender group, taking the applicable EAP targets into consideration for each province in which the entity is domiciled. Only amounts spend within the financial year, will be used to for the entity’s rating as a percentage of their leviable amount (salaries and wages bill).
Advisors need to request their clients to supply them with their EMP 201s for the period on which the client will be verified on.
This will enable the advisor to calculate the amounts that still need to be spent on Skills Development with regards to each sub-race and gender group before the end of the financial year. It is done by first projecting the total salaries and wages bill for the financial year end, then calculating the amounts still to be spent on Skills Development for each sub-race and gender group.
In terms of the amended Codes of Good Practice, an advisor will be able to take into account the amounts spent on ANY designated persons and not only the amounts spent on permanent employees, as was the case in the past. Therefore, you can now identify any designated person or persons not affiliated with your business, for Skills Development expenditure purposes.
ABOUT THE AUTHOR
Dominique van Deventer is a SEESA BEE Legal Advisor at our Bloemfontein office. He obtained is LLB degree from the University if the Free State and has been with SEESA for 7 months.