Whilst the motivation for organisations to comply with Broad Based Black Economic Empowerment codes invariably differs from one organisation to another, BBBEE benefits warrant a new view. If you discovered you could benefit, both financially and operationally, from adhering to your industry’s BBBEE codes simply through following good business practices, would it change the reason you comply?
BBBEE’s new scorecard criteria came into effect in October 2015, and caused great concern across numerous industries. At first read, with the bar raised and the requirements to maintain and increase BBBEE levels substantially raised in most areas of compliance, the adjusted weighting sections, especially skills development, become a lot more attractive.
Learnerships – the long-time swear word for staff development (possibly due to SETA frustrations), are really just workplace-based practical qualifications. There is no trick to it. Learners learn, work, and earn, whilst gaining a recognised qualification during the process.
If contributing to the country’s unemployment solutions, as well as providing new opportunities for youth development, is not ticking enough boxes for you, try these benefits on for size:
- By implementing learnerships you gain up to eight BBBEE points (four points for meeting the employee and unemployed learner requirements), plus an additional five bonus points for employing successful learnership graduates. Ensure you meet your ‘Total Spend’ and ‘Disabled Learner Spend’ targets and earn 25/20 points for your Skills Development Criteria.
- Through the SARS Learnership Tax Incentive, you can write off company tax usually paid on profits, for up to R60 000 per learner, per annum. That equates to a R16 800 saving (at 28% Company Tax payable). If a learnership only cost you R15 000, it remains a highly profitable exercise. Any training provider worth their salt will complete the IT180 forms (SARS Learnership claim form) on your behalf.
- Try the Employment Tax Incentive. Ensure your learners are between the ages of 18-35 and they qualify you for up to 50% rebate on paid wages (limited to wages of no more than R6 000 per month) through your monthly PAYE returns. If you pay your new learner R2 000 per month (recommended minimum), you get R 1 000 back – per month.
- Learnerships are one of the easiest ways to attract funding, whether through SETA funding or other government-sponsored projects, funding for the costs incurred are available to your organisation.
An ever-growing number of South African companies are implementing learnerships as part of their BBBEE, skills development, corporate social investment, and employee development efforts with great success. If this is achievable, with financial benefit to your organisation and sought-after outcomes, why are you not yet on board?
