Eligibility for YES Initiative Registration

To participate in the YES Initiative, you are required to meet specific B-BBEE compliance requirements based on the classification of your business:

• If you are a generic entity, you must achieve a 40% sub-minimum in each of the three priority elements (ownership, skills development, and enterprise/supplier development) or an average of 50% across these elements.
• As a QSE, you are required to achieve an average of 40% across two priority elements, instead of a mandatory 40% in ownership and one other element.
• B-BBEE Status Maintenance: All measured entities must maintain or improve their B-BBEE status level from the previous year.

Failure to meet the 40% sub-minimum for priority elements results in a one-level B-BBEE status downgrade. However, the YES Initiative provides an opportunity to recover or even enhance this status through strong performance.

YES Targets for Entities

The YES Initiative sets clear targets for job creation or sponsorship, tailored to the entity’s size and financial capacity:

Generic Entities

Targets are determined by the highest result from the following options:

• 1.5% of the entity’s headcount, or
• 1.5% of the average Net Profit After Tax (NPAT) over the last three years, converted to a headcount number by dividing by R55,000, or
• Revenue-based table.

QSEs

Targets are based on headcount, as outlined in the headcount-based table.

Eligible Individuals

The initiative focuses on employing black individuals (as defined by B-BBEE codes) aged 18 to 35. If an entity cannot create sufficient new jobs internally, you may sponsor qualifying jobs in EMEs or QSEs to meet your YES targets.

Benefits of YES Participation

Participating in the YES Initiative not only contributes to youth empowerment but also enhances your entity’s B-BBEE recognition level with the following rewards:

• Achieve YES target + 2.5% absorption (permanent employment of YES youth): 1-level enhancement.
• Achieve 1.5x YES target + 5% absorption: 1-level enhancement + 3 bonus points.
• Achieve 2x YES target + 5% absorption: 2-level enhancement.

Additionally, 50% of informal skills development expenditure for YES employees can be claimed under Categories F and G of the Skills Development scorecard, further boosting B-BBEE points.

The YES Initiative does not alter the priority element compliance requirements, meaning a failure to meet the 40% sub-minimum still results in a B-BBEE level downgrade. However, by excelling in the YES Initiative, you can recover a lost level and potentially achieve a higher status. This makes YES a powerful tool for businesses seeking to balance compliance with meaningful social impact.

By participating in YES, you demonstrate a commitment to youth development and economic transformation while unlocking tangible B-BBEE benefits. Whether you’re a large corporation or a small enterprise, the YES Initiative offers a pathway to enhance your B-BBEE scorecard and contribute to a more inclusive South Africa.