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 Skills Development Scorecard allocates points for:

The Skills Development Scorecard constitutes 25 points towards the B-BBEE Scorecard.

• 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.

Companies with an annual turnover of more than R50 million need to spend 6% of their payroll (leviable amount) on BEE Skills Development.

 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. Before any training or other activity related to the Skills Development project can begin, applications for Discretionary Grants must be submitted and approved.

Skills College focuses on assisting companies to maximise their B-BBEE Skills Development Expenditure since 2008. We have created novel ways of maximising your skills spend, with specific reference to Learner Living with Disabilities as well as obtaining those elusive Absorption points. Please feel free to contact me at jacques@skillscollege.co.za or visit  www.skilscollege.co.za for more information.

Looking forward to connecting with you!