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The Youth Employment Service (Y.E.S.) Initiative was gazetted by Minister Davies on the 28th of August with immediate effect. This initiative is the product of the private sector engaging with government to find workable solutions to South Africa’s youth unemployment dilemma.  Simplified, the Y.E.S. Initiative enables up to two B-BBEE levels of enhanced B-BBEE status recognition if certain youth job creation targets are met.

Key aspects of the final legislation:

  • Companies can start to implement immediately
  • The previously proposed pre-requisite of Skills Development bursary spend of 2.5% of leviable amount is no longer in place (making Y.E.S. more affordable and feasible)
  • Companies can increase their BEE recognition level:
    • 1 level for meeting the youth employment target and 2.5% absorption
    • 1 level +3 points for 1.5 x youth employment target and 5% absorption
    • 2 levels for doubling the youth employment target and 5% absorption
  • The youth employment target is based on the higher of:
    • 1.5% of headcount
    • 1.5% of NPAT / R55,000; or
    • As determined by a table based on revenue
  • Eligible participants are:
    • Between the ages of 18 and 35; and
    • Meet the definition of Black people (South African Coloured; Indian; African)
  • Companies need to maintain or improve their previous years BEE rating
  • Existing employees can’t be replaced
  • Where measured entities are unable to create a sufficient number of new jobs to meet their targets, they may sponsor new jobs in EMEs or QSEs
  • Measured entities will be able to claim up to 50% of their informal skills development spend on Y.E.S. employees as Informal Training under Skills Development

Access the Y.E.S Gazette:


Access the Y.E.S practice note:


Transcend has set up a Y.E.S. division to help you:

  1. Calculate your targets
  2. Decide on the optimal BEE combination of initiatives to increase up to 2 levels
  3. Recruit Y.E.S. candidates
  4. Host Y.E.S. candidates
  5. Provide work readiness training programmes
  6. Build absorption plans

This article was written by
Shaun Smit. Should you require more information on Transcend’s service offerings, please do not hesitate to contact us.

© Copyright 2018. Transcend Group. All Rights Reserved.


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