Skills Development is a 20-point element in the B-BBEE Generic Codes scorecard for Large Enterprises, and it is one of the most achievable elements for improvement when approached with a structured annual strategy. Unlike Ownership (which requires complex structural changes) or Management Control (which depends on recruitment pipelines), Skills Development can be meaningfully advanced within a single financial year through deliberate training investment and SETA-aligned programme design.
The primary measure in the Skills Development element is annual spend on learning programmes for black employees, calculated as a percentage of total annual payroll (PAYE-based). The target is 6% of payroll spent on qualifying learning programmes for black employees, with a sub-target requiring that 2% of payroll be spent on learning programmes for black employees with disabilities. Within the 6% target, the Codes distinguish between PIVOTAL programmes (Professional, Vocational, Technical and Academic Learning programmes) and non-PIVOTAL programmes. PIVOTAL spend is double-weighted — R1 spent on a PIVOTAL programme counts as R2 for scoring purposes — providing a strong incentive to structure training spend through learnerships, apprenticeships, internships, and SETA-registered qualifications.
The Annual Training Report (ATR) and Workplace Skills Plan (WSP) are mandatory submissions to the relevant SETA (Sector Education and Training Authority) that underpin Skills Development claims. The WSP is submitted at the beginning of the financial year and outlines planned training by occupation and NQF level. The ATR is submitted at the end of the year and reports actual training completed against the plan. Failure to submit WSP and ATR documentation on time — the deadline is typically 30 April each year — results in penalties on the Skills Development scorecard and may disqualify the entity from claiming SDL levy rebates from the relevant SETA.
SETAs are sector-specific bodies established under the Skills Development Act to oversee training and development within their sectors. There are 21 SETAS in South Africa, covering sectors from agriculture (AgriSETA) to energy (EWSETA) to wholesale and retail (W&RSETA). Your company is affiliated to a SETA based on your primary SIC code. The SETA determines which qualifications and learning programmes qualify for Skills Development Levies (SDL) rebates and which programmes qualify as PIVOTAL for B-BBEE purposes. Choosing the right SETA-registered learning programmes and building a relationship with your SETA's employer liaison officers are practical steps that improve both your SDL rebate recoveries and your B-BBEE Skills Development score.
Learnerships are one of the highest-impact instruments for B-BBEE Skills Development scoring. A learnership is a structured learning programme combining theoretical training (typically at an accredited training provider) with on-the-job practical experience, culminating in a nationally recognised NQF-registered qualification. Each registered learner on a SETA-accredited learnership earns Skills Development spend recognition at their cost of participation. Additionally, section 12H of the Income Tax Act provides allowances for employers who enter into registered learnership agreements, reducing the effective net cost. Structuring learnership programmes for unemployed black youth — rather than only for existing employees — also earns additional points in the PIVOTAL sub-criteria.
The PIVOTAL training sub-criterion rewards employers who invest in formal, accredited programmes. PIVOTAL programmes include not only learnerships but also apprenticeships (artisan trades registered under the Manpower Training Act), skills programmes (part-qualifications registered on the NQF), bursaries and study grants for formal tertiary qualifications, and graduate internships for employed individuals with tertiary qualifications who are completing workplace experience requirements. Each category has specific evidence requirements at verification — enrollment agreements, SETA confirmation letters, training provider accreditation certificates, and completion certificates must all be maintained in an orderly filing system throughout the year.