B-BBEE (Broad-Based Black Economic Empowerment), often shortened to BEE, is the South African scorecard system measuring how much a business has transformed across several weighted elements - ownership, management control, skills development, enterprise and supplier development, and socio-economic development.
What it means
A business earns a B-BBEE level based on its total scorecard points, and that level affects its eligibility to win government and many corporate contracts. Skills development is the element with the clearest payroll link, since spend on staff training is measured as a percentage of payroll cost.
Where it fits in
The skills development pillar ties B-BBEE directly to payroll: qualifying training spend is measured against the leviable payroll amount, the same base SDL is calculated on, making accurate payroll figures essential to both the SDL calculation and the B-BBEE scorecard.
Key rules
- B-BBEE = Broad-Based Black Economic Empowerment, a weighted scorecard system.
- A business's score determines its B-BBEE level, affecting contract eligibility.
- Skills development spend is measured as a percentage of payroll cost.
- Shares its payroll base with the SDL calculation.
