B-BBEE Compliance Guide

Skills Development by Sector

A comprehensive guide to skills development scoring, spend targets, and compliance requirements across all 12 gazetted B-BBEE sector codes in South Africa.

12

Sector Codes

11

Priority Element

19–34

Points Range

3–8%

Spend Targets

Priority Elements

In 11 of 12 sector codes, Skills Development is a priority element. If your entity fails to meet the 40% sub-minimum threshold, your B-BBEE level is automatically discounted by one level — regardless of performance on other scorecard elements. The only exception is Transport.

How Skills Development Points Work

Understanding the difference between core and bonus points is essential for maximising your scorecard performance.

Core Points

Core points are the mandatory skills development points that determine your sub-minimum compliance. Typically 15–25 points depending on sector.

How to Achieve Core Points

  • Submit a SETA-approved Workplace Skills Plan (WSP) and Annual Training Report (ATR)
  • Meet skills expenditure targets (typically 3–6% of leviable amount) on learning programmes for black people
  • Fund bursaries for black students at Higher Education Institutions
  • Enrol black employees and unemployed learners in learnerships, apprenticeships, and internships
  • Ensure training spend is directed at SETA-accredited or QCTO-aligned programmes

Bonus Points

Bonus points reward entities that go beyond compliance. They are not subject to the 40% sub-minimum and can boost your level without risk. Typically 4–5 points.

How to Achieve Bonus Points

  • Absorb unemployed black learners into permanent employment after completing learnerships or internships
  • Exceed minimum spend targets on skills development programmes
  • Complete structured mentorship programmes (Construction sector)
  • Invest in PIVOTAL programmes that lead to occupational qualifications
  • Note: Mining has 0 bonus points — all 25 are core with binary compliance

Quick Comparison Table

Skills development points and spend targets at a glance across all gazetted sector codes.

SectorCoreBonusTotalSpend Target*Priority
Generic Codes205256% of leviable amount*
Yes
Financial Services15419Tiered: 2–8% by level
Yes
Construction215266% of leviable amount*
Yes
ICT205256% of leviable amount*
Yes
Tourism205256% of leviable amount*
Yes
Transport205253% of leviable amount*
No
Agriculture (AgriBEE)205256% of leviable amount*
Yes
Mining250255% of annual payroll
Yes
Property205256% of leviable amount*
Yes
Forestry205256% of leviable amount*
Yes
Marketing & Communication (MAC)205256% of leviable amount*
Yes
Defence205256% of leviable amount*
Yes

*Leviable amount refers to the total gross salary bill on which the Skills Development Levy (SDL) is calculated — essentially the annual payroll cost including salaries, wages, bonuses, overtime, and other remuneration as defined by the Skills Development Levies Act. In most sector codes, the skills spend target is expressed as a percentage of this leviable amount.

Sector-by-Sector Analysis

Click on any sector to see detailed requirements, gazette references, and key compliance obligations.

Skills Development Glossary

Key terms and acronyms used in B-BBEE skills development compliance.

SDL

Skills Development Levy

A compulsory levy of 1% of total payroll paid by employers with an annual payroll exceeding R500,000. Collected by SARS and distributed to SETAs and the National Skills Fund.

WSP

Workplace Skills Plan

An annual plan submitted to the relevant SETA detailing the training and development interventions an employer intends to implement for its employees in the coming year.

ATR

Annual Training Report

A report submitted alongside the WSP that records all training and development activities completed by the employer in the previous year.

PIVOTAL

Professional, Vocational, Technical & Academic Learning

Structured learning programmes that result in occupational qualifications or part-qualifications. These carry higher weighting on the skills development scorecard.

SETA

Sector Education and Training Authority

Government bodies responsible for skills development within specific economic sectors. There are 21 SETAs in South Africa, each overseeing training in their sector.

Leviable Amount

Total Gross Salary Bill

The total payroll cost — including salaries, wages, bonuses, overtime, and other remuneration — on which the SDL is calculated. Most spend targets are expressed as a percentage of this amount.

QCTO

Quality Council for Trades and Occupations

The quality assurance body responsible for occupational qualifications in South Africa. QCTO accreditation is required to offer occupational programmes.

Sub-Minimum

Minimum Threshold Requirement

The minimum percentage of scorecard points that must be achieved on a priority element. Failure to meet the 40% sub-minimum results in an automatic one-level discount on your B-BBEE status.

EME

Exempted Micro Enterprise

An entity with an annual turnover of R10 million or less. EMEs are exempt from full B-BBEE verification and automatically qualify for Level 4 (or Level 1 if 100% black-owned).

QSE

Qualifying Small Enterprise

An entity with an annual turnover between R10 million and R50 million. QSEs are measured on a simplified scorecard with fewer elements than generic enterprises.

SDF

Skills Development Facilitator

A designated person responsible for coordinating an organisation's skills development activities, submitting the WSP and ATR, and liaising with the relevant SETA.

NQF

National Qualifications Framework

A comprehensive system for the classification, registration, and quality assurance of South African qualifications. Training programmes are classified by NQF levels (1–10).

Not Sure Where Your Sector Stands?

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