Maximise your B-BBEE Scorecard through Bursaries
February 12 2020 By Beth Cook
Recent changes to B-BBEE legislation have made bursaries an appealing and valuable investment option for employers.
The amended B-BBEE Codes of Good Practice, which came into effect on 1 December 2019, introduced a new category of Skills Development expenditure aimed at bursaries for black students at higher education institutions, earning employers 4 points on their scorecard for meeting a target of 2.5% of the leviable amount. In light of the #FeesMustFall movement, this particular amendment was to be expected, as the Government seeks to unlock new funding for their longstanding promise of free tertiary education for the poor.
This is good news for employers who can now earn additional points for spending on bursaries for black students. Furthermore, with a little bit of planning and foresight, an employer can potentially maximise the total number of points earned under the Skills Development element of their B-BBEE scorecard.
Below is an extract from the amended codes, detailing the current compliance targets and associated point allocations for the Skills Development element of the scorecard:
18.104.22.168 Skills Development Expenditure on Learning Programmes
specified in the Learning Programme Matrix for black people
as a percentage of Leviable Amount
22.214.171.124 Skills Development Expenditure on Bursariesfor Black
Students at Higher Education Institutions
126.96.36.199 Skills Development Expenditure on Learning Programmes
specified in the Learning Programme Matrix for black
employees with disabilitiesas a percentage of Leviable Amount
Considering the above, an employer could optimise their points by investing in bursaries for black employees with disabilities and in fact, depending on the amount of their actual spend, potentially earn 14 points by meeting the compliance targets for each of the above three categories.
Progression provides a consulting and implementation service across all categories of the Skills Development Element of the BBBEE score card. Contact us today and chat to one of our consultants to assist in optimising your skills development and disability programmes.