It’s Half-Year: How is you B-BBEE Skills Spend Going?

Many international entities have December as their year-end, whereas South African companies typically have February as their year-end. This means that an entity with December as year-end, who wishes to do a BEE scorecard rating based on their 2022 financials, has only a few months left to make any contributions or payments to meet targets, as well as to do the planning for the next financial and B-BBEE measurement period.

Skills Development Expenditure is measured based on the company figures in a specific financial period. This element measures the training spend on Black employed and unemployed learners during the financial year under review; this spend must be incurred before the end of the financial period and is a Priority Element, which implies dire consequences if sub-minima are met!

Important is to remember is that training takes time and that skills transfer has to take place within the financial year. This means that training and learnerships should at least have started within the financial year. The sooner learnerships start the better because any payment towards salaries or stipends for learners will also count towards acceptable contributions under this element.

BEE Consultants are very busy during these times and can provide extremely useful guidance and support. Skills College (Pty) Ltd can assist if you need to make final payments for Skills Spend that need to be done within the 2023 year. We can also assist with doing the planning for your next cycle that needs to be put in place before the new year dawns.

Act now to avoid the rush!

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