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  • What is
    YES

YOUTH EMPLOYMENT SERVICE

The YES (Youth Employment Service) programme is a business-led government backed initiative designed to create employment for one million people aged 18- 35.

With the national youth unemployment crisis requiring urgent attention, the Youth Employment Service initiative aims to give an entire generation of youth the opportunity to gain work experience, transforming their lives, the businesses they help grow, and the economy of the entire country.

Businesses who participate in the YES programme can potentially climb two B-BBEE levels and be part of driving economic growth for all.

Who can participate

Any business can participate by sponsoring youth in employment for 12 months.

In order to gain B-BBEE recognition, entities need to meet the minimum criteria as below as well  as achieve the YES targets below:

  1. Generic Enterprises – Total revenue above R50 million per annum. Company must achieve at least the 40% sub-minimum under each of the priority elements of B-BBEE scorecard. Alternatively, the entity must achieve an average of 50% across the three priority elements.
  2. QSEs & EMEs – Total revenue less R50 million per annum. The business must achieve at least 40% in two of the three priority elements, with Ownership being one of the two elements Alternatively, the business must achieve an average score of 40% across two priority elements with Ownership being one of the two elements.

How to participate

A business can participate by sponsoring unemployed youth for 12 months in any combination of the following three ways:

  1. Sponsor and host youth within your business
  2. Sponsor placements within an existing SME/supply chain.
  3. Host in a new SME

Is achieving B-BBEE rewards guaranteed?

A business stands to gain B-BBEE benefits by reaching certain YES targets as below

% of YES target headcount achievedPermanent employment offered to YES employeesB-BBEE rewards
100%2.5%One recognition level
150%5%One level recognition enhancement and three bonus scorecard points
200%5%Two recognition levels

Enterprises that meet the YES targets may progress one recognition level on their B-BBEE scorecards on condition that they absorb or offer permanent employment to 2.5% of the YES employees. Those that exceed the target by 1.5% and permanently employ 5% of the target group will receive a one level recognition enhancement and three bonus scorecard points, while those that double the YES target will be enhanced two levels on their B-BBEE scorecards.

How much do employees need to be paid?

Such employees must be paid at least R3 500 a month. You can potentially claim back a portion of this spend via the Employment Tax Incentive (ETI).

How to calculate YES target headcount

Generic Entities
(Turnover > R50 Million)

Yes target headcount is the higher of:

  1. 1.5% of the YES entity’s headcount in the preceding year; OR
  2. 1.5% of the YES entity’s average Net Profit After Tax (NPAT) from South African operations in the immediately preceding three years, converted to a headcount number by dividing that NPAT number by R55 000; OR
  3. A target as determined in Table 1.

TABLE 1 

TOTAL REVENUE BAND (RM) MINIMUM BLACK YOUTH JOB
50 – 75 6
75 – 99 7
100 – 149 8
150 – 199 9
200 – 249 10
250 – 299 11
300 – 349 12
350 – 399 13
400 – 449 14
450 – 500+ 15

QSEs and EMEs
(Turnover < R50 Million)

These entities target per annum are based on headcount numbers as determined in Table 2.

TABLE 2

EME / QSE HEADCOUNT Y.E.S YOUTH TARGET EME / QSE HEADCOUNT Y.E.S YOUTH TARGET
1 – 19 1 400 – 419 21
20 – 39 2 420 – 439 22
40 – 59 3 440 – 459 23
60 – 79 4 460 – 479 24
80 – 99 5 480 – 499 25
100 – 119 6 500 – 519 26
120 – 139 7 520 – 539 27
140 – 159 8 540 – 559 28
160 – 179 9 560 – 579 29
180 – 199 10 580 – 599 30
200 – 219 11 600 – 619 31
220 – 239 12 620 – 639 32
240 – 259 13 640 – 659 33
260 – 279 14 660 – 679 34
280 – 299 15 680 – 699 35
300 – 319 16 700 – 719 36
320 – 339 17 720 – 739 37
340 – 359 18 740 – 759 38
360 – 379 19 760 – 779 39
380 – 399 20 780 – 799 40

YES target headcount is determined by the type of entity as follows:

a. GENERIC ENTITIES, turnover greater than R50 million per annum

Yes target headcount is the higher of:

  1. 1.5% of the Y.E.S entity’s headcount in the preceding year; OR
  2. 1.5% of the Y.E.S entity’s average Net Profit After Tax (NPAT) from South African operations in the immediately preceding three years, converted to a headcount number by dividing that NPAT number by R55,000; OR
  3. A target as determined in Table 1
TOTAL REVENUE BAND (RM)MINIMUM YES CANDIDATES /EMPLOYED
50 – 756
75 – 997
100 – 1498
150 – 1999
200 – 24910
250 – 29911
300 – 34912
350 – 39913
400 – 44914
450 – 500+15

b. QSEs and EMEs, Annual turnover less than R50 Million

These entities target per annum are based on headcount numbers as determined in Table 2

TABLE 2 – EME / QSE TARGET HEADCOUNT TARGETS
To be supplied

Why participate in YES?

Gain B-BBEE recognition

Be part of driving change

Social investment in the future