New codes, new targets, new scores, new challenges…
Only 3 months left before compulsory application of the new BBBEE codes. This means that BBBEE world is taking a turn as the new codes become applicable as from the 1 May 2015. The question at hand is
Are you able to reach targets?
Will you maintain the same BEE level as before?
Are you READY to be verified under the new codes?
We have taken the opportunity to note below differences between the new codes and the old codes. Please note all these changes and decide how well your company will do under the new codes.
- Thresholds: have been changed-
- EMEs R0- R10 million
- QSEs R10 million – R50 Million
- Generic R50 million and above
- Elements: the 7 elements from the old codes have been merged to 5 elements.
- Ownership, Skills Development (SD) and Socio-Economic Development (SED) remain the same.
- Management Control (MC) now combines Employment Equity
- Enterprise and Supplier Development (ESD) as new element which combines Preferential procurement with Enterprise development.
- Priority element: Ownership, Skills development and Enterprise and Supplier Development.
- New to the codes is the priority elements and this means that companies must reach a minimum of 40% of the weighting points or they will drop a level of their overall BBBEE level.
QUALIFYING SMALL ENTERPRISE:
- QSE will be verified on all 5 elements.
- QSE’s must comply with two of the priority elements with Ownership being compulsory
- Generics will be verified on all 5 elements.
- Must comply with all three of the priority elements or company will drop one BEE level.
There are far more intrinsic changes involved in the new codes, looking at the above; question remains, “ARE OU READY TO BE VARIFIED IN ACCORDANCE TO THE NEW CODES?”. Only 3 months left, do what is best and give your company another year of a breather, GET YOUR BBBEE CERTIFICATE NOW.