Skills Development is a priority element on the Skills Development element of the B-BBEE Codes and Scorecard. “Priority element” means that, if the measured entity fails to comply, it will drop one level on its scorecard.
The B-BEE Skills Development Expenditure Scorecard allocates points for the following and companies aiming to maximise their BEE points must keep the following in mind:
- Skills Development spend on learning programmes for Black people in general;
- There is particular focus on People Living with Disabilities;
- Bursaries for Black students at Higher Education institutions.
- Learnerships, internships, and apprenticeships for Black people;
- The absorption of Black people into the workforce of the measured company or into the industry at the end of the learnership, internship, and apprenticeship programmes.
There are other advantages to Skills Development besides B-BBEE points:
- All employers who are registered with the South African Revenue Service for PAYE and have an annual payroll in excess of R500 000 must pay 1% of their payroll as a Skills Development Levy and register with a relevant SETA.
- SETA submissions will open on an annual basis, and employers will be required to report their Workplace Skills Plan scheduled training for the year and their Annual Training Report training that has already happened in the previous year.
- If an employer’s application is approved, the relevant SETA will reimburse up to 20% of the expenditure in the form of a Mandatory Grant. Mandatory Grants are paid out quarterly, and any Mandatory Grants that are not claimed are transferred to the SETA’s Discretionary Fund.
- Employers can claim back between 40% and 60% of their training costs through Discretionary Grants, which are paid out at the discretion of SETA management for Skills Development projects related to scarce and essential skills.
Our slogan at Skills College is “Teaching Skills to Change Lives”, because that is what we really believe! We have created novel ways of maximising your skills spend.
