The Youth Employment Service (Y.E.S) provides an opportunity to South African businesses to enhance their B-BBEE status by up to 2 Levels.

Today, we will focus on target calculations & B-BBEE recognition for Generic Organisations only.

  1. Targets

There are 3 calculations to determine the number of Youth each employer must employ on the Y.E.S initiative in order to qualify for B-BBEE recognition. The highest result of these 3 will be the minimum target.

 

Example:

Annual Turnover: R 365 000 000

NPAT: R 4 651 200

Total Headcount: 80

 

Calculation 1: 1.5% of Headcount as at the date of the last verification

Thus: 1.5% x 80 employees = 1.2

 

Calculation 2: 1.5% of NPAT divided by R55 000

Thus: (R4 651 200 x 1.5%) / R55 000 = 1.268

 

Calculation 3:

Target Determined in Table 1 – Annexure A (Based on Turnover)

Turnover – ZAR Million

Minimum Black Youth Jobs

R50 million – R74 million

6

R75 million – R99 million

7

R100 million – R149 million

8

R150 million – R199 million

9

R200 million – R249 million

10

R250 million – R299 million

11

R300 million – R349 million

12

R350 million – R399 million

13

R400 million – R449 million

14

R450 million +

15

 

In our example above, the turnover of R365 million would require a minimum of 13 Youth to be employed.

As calculation 3 produced the highest result, 13 Youth will be required in order to qualify for B-BBEE recognition.

You can also calculate your targets by completing the required fields on the YES 4 YOUTH website.

https://www.yes4youth.co.za/for-business/

 

 

  1. B-BBEE Recognition

We are now able to determine the B-BBEE Recognition.

 

                                                                                      B-BBEE Recognition

Achieve YES Target and 2.5% Absorption

13 Youth

1 B-BBEE Level Enhancement

Achieve 1.5 x YES Target and 5% Absorption

19.5 Youth (Thus, 20)

1 B-BBEE Level Enhancement plus 3 additional bonus points to overall scorecard

Achieve 2 x YES Target and 5% Absorption

26 Youth

2 B-BBEE Levels Enhancement

 

  • Absorption:

In the first year, organisations will receive their B-BBEE recognition even though absorption could not have occurred as yet, as long as the Youth have completed at least 8 of the 12 months. Absorption will be verified from year 2 onwards.

 

  • Calculations for second year:

The calculation on the head-count for the second year to determine targets EXCLUDE the youth from the previous year. The target for calculation 2 based on total headcount / employees is based on your total headcount excluding Youth registered on the Y4Y programme

 

  1. Legislation

 

I have included links to both the gazette as well as the practice note below. In addition, I have also included answers on some frequently asked questions.

Feel free to contact me should you require additional information or assistance on YES registration and B-BBEE requirements.

https://www.thedti.gov.za/gazzettes/41866.pdf – Gazette

https://www.thedti.gov.za/economic_empowerment/docs/Practice_Note.pdf – Practice Note

https://www.yes4youth.co.za/faqs/ – Frequently asked questions

 

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