With an unemployment rate of roughly 26,7 % (according to Stats SA), about six million people in South Africa are unemployed. That is an alarming statistic to say the least, and the number of unemployed youth that make up this number have been a driving consideration in new BEE legislation. In an attempt to rectify the problem of growing youth (and overall) unemployment, the YES (Youth Employment Service) initiative seeks to create one million jobs and job opportunities within the next three years.
How is this intended to take place?
Workplace experience and education level both have a huge impact on employability. With the creation of new starter positions (by means of 12-month fixed-term contracts), the YES initiative is intended to make provision for the youth to be trained and employed through learnerships, bursaries to tertiary institutions, and training courses (both accredited and not). In this way youth are provided a chance to acquire workplace experience, a higher education level, or both of these, thus making them more employable overall. What’s more, this initiative is also intended to prepare the youth, through experience, for the expectations and stresses of the working world.
For businesses: Joining the YES initiative
The new youth employment B-BBEE recognition allows a business that complies with YES registration criteria and meets the respective YES targets to improve their existing B-BBEE score with up to two levels.
In the case where a larger company does not have capacity to employ or host the youth, they can still participate bysponsoring the salary for 12 months for a starter position at another SMME, allowing the larger company to qualify for B-BBEE recognition. To stimulate demand-side job creation, participating businesses that employ black youths between 18 and 29 years of age will also be eligible for the reduction off PAYE via Employment Tax Incentive (ETI). The indicated monthly stipend for these youth positions is R3500 per month and is in line with the National Minimum Wage.
Read up on the qualifying criteria and other information in the following article.
If you have any questions regarding the YES initiative or you want to understand how you can integrate YES into your business, contact experts in B-BBEE legislation to help.
Say ‘YES’ to a brighter future for the South African economy!