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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Amended Codes of Good Practice (2018): Youth Employment Service Initiative

Amended Code Series 000: Framework for Measuring Broad-Based Black Empowerment

Statement 000: Youth Employment Service

3. The Y.E.S Targets


3.1 Generic Entities:
3.1.1 Targets for Generic Entities will be the Higher between (i), (ii) and (iii) below:
(i) 1.5% of the Y.E.S Measured Entity’s headcount in the preceding year; OR
(ii) 1.5% of the Y.E.S Measured 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
(iii) a target as determined in Table 1 - Annexure A.


Calculation of NPAT example: For example, if Company A has an average NPAT of R500m over the past three financial years, their Y.E.S target will be set by converting R7.5m (1.5% of a R500m NPAT) to a headcount number of 137 employees (R7 500 000 /R55 000).


Headcount vs NPAT example: For example, if Company B employs 10 000 employees and has an average NPAT of R100 Million, the target calculation would be as follows:


Target based on NPAT: (1.5% of R100 000 000) / R55 000 = 28 employees:


Target based on headcount: 1.5% of 10 000 = 150 employees


In this case Company B’s new position target would be 1.5% of headcount – or 150 employees - as their NPAT target equates to less than 1.5% of their headcount.


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