For this article, we will discuss the Amended Code Series 300, Statement 300 of the Broad -Based Black Economic Empowerment Amendment Act 2003 as amended in Government Gazette #42496 was published on 31 May 2019.
These changes are effective as from 01 December 2019.
A brief summary is given below.
Code Series 300: Skills Development
- The 6% target for skills development expenditure on learning programmes for Black People has now been reduced to 3.5% for a weighting which has been reduced from 8 to 6 points.
- A new sub-element for skills development expenditure on bursaries for Black students has now been introduced. The target for this sub-element is 2.5% for 4 points.
- The target for the number of Black People participating in learnerships, apprenticeships and internships as a percentage of total employees no longer includes a specific target for Black unemployed people and is now set at 5% for a total of 6 points. The 5 bonus points for absorption by a measured or industry entity at the end of a learnership is clarified to also pertain to internships and apprenticeships.
- The calculation of the 40% minimum threshold to avoid discounting by one BEE level cannot include bonus points.
- Recognition for skills development expenditure arising from informal and workplace learning programmes was previously limited to 15% of the total value of skills development expenditure. This limit is now increased to 25%.
It is important to note that the amendments will require that 2.5% of a corporation’s yearly payroll be spent on funding higher education as mentioned in clause 22.214.171.124.
Author Craig Tonkin