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For many South African businesses, Skills Development is more than a training requirement. When approached strategically, it can contribute towards a stronger B-BBEE scorecard while developing valuable workplace skills.
But poor planning can mean missed opportunities and, in some cases, increased B-BBEE risk.
So, is your business getting enough value from its Skills Development strategy?
In short: Skills Development is a priority element under the B-BBEE Codes. Falling short of its sub-minimum can drop your overall B-BBEE level by one. Learnerships for black participants count towards the Skills Development scorecard, and qualifying registered learnerships may earn section 12H tax allowances. The benefit isn’t automatic, though; it depends on how the learnership is planned and structured.
Why Skills Development Matters for B-BBEE
Under the Generic B-BBEE Codes of Good Practice, Skills Development is a priority element.
According to the Department of Trade, Industry and Competition’s Amended Code Series 300, applicable measured entities must achieve the required sub-minimum under the Skills Development element. Where the relevant priority-element requirements are not met, an entity’s overall B-BBEE status may be discounted by one level.
The Generic Codes also recognise participation by black people in learnerships, apprenticeships and internships as part of the Skills Development scorecard.
This makes Skills Development an area that businesses cannot afford to treat as a last-minute compliance exercise.
Learnerships Can Offer More Than B-BBEE Points
When appropriately structured and aligned with the applicable B-BBEE requirements, learnerships can help businesses:
- Develop practical workplace skills
- Work towards applicable Skills Development targets
- Support overall B-BBEE performance
- Build a stronger internal skills pipeline
- Potentially benefit from available tax allowances
There may also be a financial benefit.
According to the South African Revenue Service’s guidance on learnership allowances, section 12H of the Income Tax Act provides annual and completion allowances for qualifying registered learnership agreements, subject to the applicable requirements.
However, simply implementing a learnership does not automatically mean a business will achieve the B-BBEE recognition or financial benefit it expects.
Which learnerships should you prioritise? Are you targeting the right areas of your scorecard? And are your Skills Development initiatives structured to support both your workforce and your B-BBEE objectives?
SEESA’s Learnership and B-BBEE Webinar
SEESA recently hosted a webinar on how learnerships help businesses improve their BEE score while developing skills. Contact us for the key takeaways or to discuss your Skills Development plan.
Frequently Asked Questions
Under the Generic B-BBEE Codes of Good Practice, Skills Development is a priority element. Measured entities must achieve the required sub-minimum, and where the priority-element requirements are not met, an entity’s overall B-BBEE status may be discounted by one level.
Yes. The Generic Codes recognise the participation of black people in learnerships, apprenticeships and internships as part of the Skills Development scorecard.
Section 12H of the Income Tax Act provides annual and completion allowances for qualifying registered learnership agreements, subject to the applicable SARS requirements.
No. Implementing a learnership does not automatically deliver the B-BBEE recognition or financial benefit a business expects. The right approach depends on the business’s size, ownership, sector and applicable B-BBEE Code.
Need Help with Your B-BBEE Strategy?
Every business is different, and the appropriate approach can depend on factors such as its size, ownership, sector and applicable B-BBEE Code.
SEESA’s BEE specialists can assist your business with understanding its requirements, planning towards its targets and managing its B-BBEE strategy more effectively.
Explore SEESA’s BEE Solution →
Want to know which learnerships will improve your B-BBEE score? SEESA’s BEE and Skills Development specialists can help you plan learnerships that support both your workforce and your scorecard.