The recent amendments to the B-BBEE codes require employers to spend 2,5% of their annual payroll on bursaries for black students at Higher Education Institutions.
The changes in the Skills Development element of the scorecard introduced a split in the 6% overall target into two parts: 3,5% for accredited programmes and 2,5% for bursaries. All companies doing verifications after 1st December 2019, have to implement these new targets to gain maximum points.
As a Department of Higher Education & Training registered skills institute offering nationally-recognised qualification programmes, corporates can now take part in the iFundi Bursary and Scholarship Programme. In supporting this programme, your company can meet its compliance requirements, while helping economically challenged and deserving black learners applying to study at iFundi, to finance their studies.
It is important to note that the overall Economically Active Population (EAP) demographic representation of black persons in South Africa also applies to the compliance target set for these bursaries and scholarships and will have to be taken into account in the calculation of points.
Expenses on scholarships and bursaries for employees or their family members are allowed, as long as the grant is not conditional on the company recovering any portion of the expense. The following conditions are allowed:
- the obligation of successful completion in their studies within the time period allocated; or
- the obligation of continued employment by the Measured Entity for a period following successful completion of their studies is not more than the period of their studies.
Over 18,000 youth have completed their studies and secured full-time employment through iFundi, With online and face to face training options and full administrative support, managing bursaries is simple and meaningful