Skills Development Program
Investing in Skills Development
For Large Companies (with turnovers exceeding R50 million) and Qualifying Small Enterprises (QSEs), Skills Development is a paramount element on the BEE Scorecard, contributing up to 25 points out of 100.
The Skills Development Scorecard encompasses a dedicated Learnership category, available to both employees and unemployed BEE candidates, making accredited Learnerships through the Zaio Programme the most efficient means of accumulating BEE Skills Development points.
This is primarily because, through a Learnership, your company can claim the training expenses (and, in certain cases, provide stipends to learners) while actively participating in the accredited Learnership Programme.
It's crucial to recognize that Economic Active Population (EAP) targets are applicable to the Skills Development Scorecard. In this context, Zaio excels, boasting diversity statistics well above industry averages.
How Does It Operate?
The Skills Development Scorecard evaluates monetary expenditure on black candidates and the number of black individuals enrolled in Learnerships and structured work-based learning programs. In essence, it emphasizes achieving targets related to (i) training expenses (in relation to total payroll) and (ii) headcount (in relation to total staff count) for those undergoing training. Additionally, note that certain sector scorecards necessitate ICT skills training to qualify, a requirement seamlessly met by the Zaio Programmes.
Total Payroll
Large Companies are mandated to allocate 6% of their total payroll for the training of BEE Candidates, while QSEs are required to allocate 3% of their total payroll. This allocation earns 8 points on the BEE scorecard. Furthermore, an additional 4 points can be earned by training Black disabled employees.
Headcount Requirement
The headcount requirement entails 2.5% of your total staff, rounded up to the nearest integer. For example, if you employ up to 40 staff, you would require 1 learner. In the case of a staff complement of 400, 10 learnerships would be needed, and so forth. By enrolling the appropriate number of candidates in a Learnership, you can earn 8 points.
Bonus Points for Employment
An additional 5 points can be garnered if Zaio Learners are employed at the conclusion of their Learnership. This employment can be on a fixed-term contract or a permanent basis. It's noteworthy that the Learner does not need to be employed by your company; if the Learner secures employment with another company, you can still obtain the bonus points. Zaio programmes offer interview preparation and job readiness training to ensure the candidates land a job.
Contribution Benefit Factor
| Indicator | Points | Target |
| Skills Development Spend | ||
| Skills Development expenditure on learning programmes for black people as a percentage of payroll | 8 | 6% |
| Skills Development expenditure on learning programmes for black employees with disabilities as a percentage of payroll | 4 | 0.3% |
| Learnership, Apprenticeships & Internships | ||
| Number of black people participating in learnerships, apprenticeships and internships as a percentage of total number of employees | 4 | 2.5% |
| Number of black unemployed people participating in training as a percentage of total number of employees | 4 | 2.5% |
| Total | 20 | |
| Bonus Points | ||
| Bonus points for the number of black people absorbed by the measured company or the industry at the end of the learnership, apprenticeship and internship programmes | 5 | 100% |
| Total | 25 | |
Zaio can help you to guarantee 25 / 25 Skills Development points in the New B-BBEE codes which relate to Learnerships
Zaio assists organisations in enhancing their overall B-BBEE status up to 2 levels through YES
Using the YES R55k per candidate contribution to cover the stipends.
Topping up the training costs with skills development funding.
We add our Skills Development programme to your existing YES programme for even more B-BBEE benefits. A novel concept, the "Youth Employment Service" (YES) companies, has been introduced, with proposals currently under consideration for enactment. Participating entities can potentially ascend by 1 or 2 BEE recognition levels by meeting minimum requirements.
To qualify, the entity must:
- Meet the 40% sub-minimums for each priority element (ownership, skills development, preferential procurement, supplier development, and enterprise development), or achieve an average of 50% (if a generic company) across the three priority elements, or an average of 0% (if a QSE) in two of the three priority elements, including ownership.
- Improve its BEE score annually.
- Achieve a full score on the Skills Development Scorecard (if a generic).
- Provide 12-month full-time employment contracts (ideally suited to Zaio learnerships) to a number of Black youth (aged 18 – 35 years) as determined by the higher of:
- 1.5% of last year's headcount.
- 1.5% of average NPAT (net profit after tax) over the last 3 years, converted to headcount by dividing by R55,000.
- A target set in a table based on annual revenue or headcount.
To advance by 1 BEE level, the YES company must meet the target and achieve 2.5% permanent employment. To ascend by 2 BEE levels, the YES company must meet double the target and achieve 5% permanent employment. In certain circumstances, an additional 3 points can also be earned, potentially propelling the company to yet another level.
SETA Rebates and Tax Incentives
Companies that implement Learnerships also qualify for rebates and incentives, including deductions as per Section 12 H of the Income Tax Act, as well as Youth Wage Subsidy incentives. Companies with Workplace Skills Programmes in place may also apply for Discretionary Grant Funding as well as Mandatory SETA funding.
For example, MICT SETA offers a discretionary training grant (including stipend) of up to R53,000 per Learner. Tax Incentives for NQF Level 5 Programmes total R80,000 per Learner, deducted in two equal parts (on commencement and completion of the Programme).
Save while creating an impact
| ZAR | Learners with no disability | Learners with disability |
| Total Tax Rebate | (80,000) | (120,000) |
| Cost of Course | (47,800) | (47,800) |
| Stipend Costs | (54,000) | (54,000) |
| Final Cost | (R21,800) | (R18,200) |
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