Earlier in 2018 the president announced the launch of the Youth Employment Service (YES) as a partnership between government and business to employ young people in the country. On the 28 August the YES scheme was gazetted by the Minister of Trade and Industry.
The YES Scheme allows qualifying entities to move up a level or two on their BBEEE score if they meet specific employment targets either in their own company or by sponsoring employment in other companies.
This article is intended to summarise the main points of the YES Scheme, but is not intended to be a definitive guide.
|Entity Size||>R50m turnover||10m to 50m turnover||<R10m turnover|
|Qualifying Criteria||40% minm for all 3 priority elements OR average of 50% across all 3||40% minm for 2 out of 3 priority elements (ownership must be one) OR average of 40% for 2 of 3 (of which ownership must be one)||Nil|
|Maintain or improve BBEEE level since prior year|
|As per table 2 (from gazette)
e.g. a company with 100 employees would have a target of 6 new employees
|Eligible Employees||• Between 18 and 35
• Meet the definition of “Black” people as defined in the BBEEE Act
Successful achievement of target will result in the following outcomes:
|Achieve Y.E.S Target and 1.5 % Absorption||Move 1 B-BBEE Recognition Level up on the Scorecard|
|Achieve 1.5 x Y.E.S Target and 5% Absorption||Move 1 B-BBEE Recognition Level up on the Scorecard + 3 Bonus Points to the Overall Scorecard|
|Double Y.E.S Target and 5 % Absorption||Move 2 B-BBEE Recognition Levels up on the Scorecard|
In addition, informal skills development expenditure for these roles can be claimed as 50% of the skills development expenditure (Category F and G of the Skills Development Framework) (instead of the lower 15%).