Benefits of Skills Development
Amazing Savings and Benefits Associated with Skills Development for BEE Compliance
If your company hopes to gain a solid BEE score and thus reap the economic benefits of BEE compliance, you need to pay attention to skills development as a priority element. Indeed, skills development is an element in which it is relatively easy to score well and benefit from tax incentives for your commitment to BEE in South Africa.
By investing 6% of your company’s payroll on training black people, you gain 8 points towards your scorecard. By spending 0,3% of the total payroll on learning programmes for disabled black employees, your company earns another 4 points. Earn another 5 bonus points for employing unemployed learners after the completion of their learnerships. In addition, you can claim 4 points for enrolling 2,5% of your employees in the learnership programmes and another 2,5% if the total headcount of your firm includes 2,5% black unemployed learners.
Working with an experienced BEE consulting and training firm to help you implement the skills development initiatives can help your firm to gain a good BEE score and reap various tax benefits. Such benefits include a tax break of R60 000 per learner in a relevant learnership programme, a tax break of R120 000 for each disabled black learner in such a programme, and an allowable deduction of R1 000 for every young employee per month that your firm employs.
Keep in mind that the previously unemployed learner participating in the accredited learnership programme is paid an allowance instead of the full standard industry salary. This also means substantial savings on your payroll. Various tax breaks and SETA grants are in place as incentives towards helping to improve the skill levels of disabled black learners and employees.
We will not only help to structure your skills development initiatives to reap the above benefits, but also make it as easy as possible for your company to do so with our various training plans and platforms. Indeed, we will even help to recruit the right candidates, helping you to focus on business, while we assist your firm in becoming BEE compliant. Give us a call to learn more about how you can benefit from our assistance with BEE and skills development.