B-BEE Rewards For Employment Of Youth

You can now improve your BEE level with up to 2 levels by participating in job creation, and more specific, in meeting the criteria for the Youth Employment Services (Y.E.S) initiative as published by the Minister of Trade and Industry in Government Gazette No 41866 of 28 August 2018.

How does it work ?

  1. All Businesses, depending on its size, no of employees and average nett profit after tax, gets a specific target to create new temporary employment positions in the industry.
  1. If those number of temporary positions has been filled with black youth for at least 12 months and 5% of these positions have been converted into permanent employment, then such a Business’s B-BBEE Level can be enhanced with 2 levels.

There are however a few rules or qualifying criteria which again will differ depending on the size of the Business.

  1. Exempted Micro Enterprises (annual turnover < R10mil) qualifies for E.S registration automatically
  2. Qualifying Small Enterprises (annual turnover between R10mil and R50mil) – QSE only qualifies for E.S registration if:
    1. The QSE maintain or improve on its B-BBEE Level of compliance obtained in the previous year
    2. The QSE achieve at least 40% of the target points in Ownership and 40% of the points in either Skills Development or Enterprise & Supplier Development i.e the 3 priority elements


  • The QSE obtain an average score of at least 40% across any two of the three priority elements,
  1. Large Enterprises (annual turnover > R50mil) – Generics only qualifies for E.S registration if:
    1. The Generic enterprise maintain or improve on its B-BBEE Level of compliance obtained in the previous year
    2. The Generic enterprise achieve at least 40% of the target points in all 3 priority element i.e. OwnershipSkills Development and Enterprise & Supplier Development


  • The Generic enterprise obtain an average score of at least 50% across all three priority elements


An Exempted Micro Enterprise, currently having a Level 4 B-BBEE status with an employee headcount of 15 employees will have to do the following in order to enhance his/her B-BBEE Status to a Level 2:

  1. Create 2 new employment positions in his/her Business
  2. Fill these positions with Black Youths (18 – 35 years) with a temporary or fixed term contract of at least one year
  3. Convert 1 of these contracts into a permanent position

To determine what the Y.E.S targets for your Business will be or to peruse the additional qualifying criteria, contact Johan Coetzee at rmi4bee@gmail.com

DOWNLOAD: Government Gazette - Youth Employment Services Initiative

This article was originally published here.