POPIA applies to any public or private body or person who processes personal information in South Africa.Example:A Trust – Trustees and Beneficiary details are stored and processed.A Company/Sole trader/CC/Non-Profit that has any customers, employees, suppliers or stakeholders.

What is the purpose of the Skills Development Act? Develop the skills of the South African workforce.Improve the quality of life for workers.Increase productivity and competitiveness.Promote self-employment.Redress historical imbalances in skills development access What is a Skills Development Levy (SDL) and who must pay it? The Skills Development Levy is a tax collected from employers to fund education and training initiatives.Employers with an annual payroll exceeding R500,000 must register and pay 1% of their total payroll to SARS as SDL.Some government departments, public entities and religious/public benefit organisations may be exempt How can a Company benefit from paying Skills Development Levies? Employers can claim back:20% of the SDL paid by submitting a Workplace Skills Plan (WSP) and an Annual Training Report (ATR) to their relevant Sector Education and Training Authority (SETA).Discretionary grants for learnerships, skills programmes, internships, and bursaries.Tax incentives for learnership agreements. What is a Workplace Skills Plan (WSP) and Annual Training Report (ATR)? A WSP outlines the skills needs within the business and the planned training interventions for the year.An ATR reports on the actual training conducted in the previous year.These must be submitted annually to the relevant SETA (usually by 30 April each year) to access SDL rebates anddiscretionary grants. What is a SETA and what is it function? A Sector Education and Training Authority (SETA) is a statutory body overseeing skills development within aspecific economic sector.Functions include:Accrediting training providers.Allocating grants.Implementing sector skills plans.Promoting learnerships and apprenticeships What is a learnership and how does it work? A learnership is a structured learning programme combining theory and practical work experience, leading to a registered qualification.Governed by a learnership agreement between employer, learner, and training provider.Tax and grant incentives are available for participating employers. Is Skills Development linked to Employment Equity Compliance? Yes. Skills development forms a critical part of Employment Equity Plans for designated employers (50+ employees), particularly to:Promote training and advancement for historically disadvantaged groups.Meet Employment Equity Act targets. What happens if an employer fails to comply with SDL or WSP/ATR submissions? Non-compliance consequences:For SDL: Penalties and interest from SARS.For WSP/ATR: Loss of grant incentives and non-compliance with Employment Equity Act requirements. What types of training can be claimed under Skills Development? Eligible training includes:Learnerships, internships, and apprenticeships.Short courses and accredited skills programmes.Adult Education and Training (AET).Recognition of Prior Learning (RPL).Training must be linked to the National Qualifications Framework (NQF) to qualify for grants. Are small businesses exempt from Skills Development Levies and Skills reporting? Yes and no.Small businesses with an annual payroll under R500,000 are exempt from paying SDL.However, if voluntarily participating in skills development initiatives, they may still access discretionary grants via SETAs. What is discretionary funding and how can an employer access it? Discretionary funding is grant funding allocated by SETAs for strategic training initiatives like learnerships, internships, and bursaries.To access it:Submit a detailed application to your SETA during their open window periods.Comply with SDL payments and WSP/ATR submissions.Priority is given to B-BBEE-aligned and historically disadvantaged beneficiaries. What is the difference between a skills program and a learnership? A skills programme is a short, focused training intervention that forms part of a full qualification.A learnership is a full qualification-based programme combining structured learning with practical work experience.Both are SETA-accredited but vary in length, complexity, and grant value. Can training be conducted in-house or must it be via an external provider? Training can be done in-house provided the training provider is accredited by a SETA or the Quality Council for Trades and Occupations (QCTO) for the applicable unit standards or qualifications.Non-accredited in-house training won’t qualify for skills development grants or tax incentives. (There are howeversome SETA’s that accept on the job training for these purposes). What are the B-BBEE implications of Skills Development? Skills development is a priority element on the B-BBEE scorecard, with:A target spend of 3%–6% of payroll on training for black employees.Specific weighting for disabled, youth, and rural learners.Mandatory learnership and internship initiatives for better scoring.Non-compliance with priority elements can result in a level discount on a company’s B-BBEE rating. How are learnership tax allowances calculated? Employers can claim:R40,000 upfront and R40,000 on completion for each learner without a disability.R60,000 upfront and R60,000 on completion for learners with disabilities.This is separate from SETA grants and claimed via SARS tax returns. What records must be kept for Skills Development compliance? Employers should maintain:SDL payment records.Signed learnership agreements.Proof of training attendance and completion.WSPs and ATRs submitted.Discretionary grant application records.Tax rebate documentation for learnerships. What is the role of a Skills Development Facilitator? An SDF is responsible for:Developing and submitting WSPs and ATRs.Advising the business on training priorities.Coordinating training initiatives.Acting as a liaison between the employer and SETA.Employers may appoint an internal or external SDF. Can non-permanent employees (fixed-term, part-time, interns) be included in skills development initiatives? Yes, any employee or learner participating in an accredited programme can be included for SDL rebate and SETA grant claims, provided proper contracts and training records are in place.

Legislative Compliance |

Legislative Compliance

Pinion Human Capital is a leading consultancy firm specialising in Human Capital Development and legislative compliance. Our comprehensive range of services are designed to support clients in both achieving compliance with applicable regulations and optimizing their human capital development initiatives. We tailor our offerings to each client’s specific needs and provide practical solutions and implementation support.

Frequently Asked Questions

Broad-Based Black Economic Empowerment (B-BBEE)

What is BBBEE?

BBBEE stands for Broad-Based Black Economic Empowerment.
It is a government policy aimed at redressing the inequalities of Apartheid by promoting economic participation of Black South Africans in the economy.

Who counts as black for the purposes of BBBEE?

B-BEEE seeks to advance access of black people in the South African Economy. The term “black people” is a
generic term which means Africans, Coloureds and Indians —
(a) who are citizens of the Republic of South Africa by birth or descent; Or
(b) who became citizens of the Republic of South Africa by Naturalisation —
(i) before 27 April 1994; or
(ii) on or after 27 April 1994 and who would have been entitled to acquire citizenship by naturalisation prior to that date.

Why is BBBEE compliance important for my business?

BBBEE compliance:
1. Improves your chances of securing government tenders and contracts.
2. Enhances access to private sector supply chains.
3. Improves your business image and aligns with corporate social responsibility goals.
4. Helps you attract investors and partners who prioritise transformation.

What is a BBBEE certificate and who issues it?

A BBBEE certificate is an official document confirming your business’s level of compliance. It is issued by a SANAS-accredited verification agency.

Who is the BBBEE Commission?

They are a regulatory body established as an entity within the administration of the Department of Trade and Industry (“the dti”) by the Broad-Based Black Economic Empowerment Act 53 of 2003, as amended by Act 46 of 2013 (“the B-BBEE Act”), to oversee the implementation of the B-BBEE Act and investigate violation.

What are the different levels of BBBEE compliance?

There are eight levels, with Level 1 being the highest. A Level 1 contributor has the best score (≥100 points), while Level 8 has the lowest qualifying score (40–54.99 points). Non-compliant businesses score below 40 points.

What are the BBBEE scorecard elements?

The generic scorecard measures five elements:
1. Ownership
2. Management Control
3. Skills Development
4. Enterprise & Supplier Development (including Preferential Procurement)
5. Socio-Economic Development
Each element has a weighting and specific targets.

Does my business need to comply with BBBEE?

All businesses may choose to comply, but it becomes strategically essential if:
1. You want to do business with Government or large corporates.
2. You are part of a supply chain for clients who must meet BBBEE targets.
3. You aim to improve market access or public image.

What are the thresholds for BBBEE classification?

Start-up Enterprise – This is a recently formed or incorporated entity that has been in operation for less than one (1) year. A start-up enterprise does not include any newly constituted enterprise which is merely a continuation of a pre-existing enterprise.
Exempted Micro-Enterprises (EMEs) -This are entities that generate an annual turnover of R0 and less R10 million.
Qualifying Small Enterprises (QSEs) – These entities have an annual turnover of above R10 million and less R50 million.
Large Enterprises – Entities with an annual turnover of above R50 million.
Please note these thresholds are different for the sector codes.
Each category has different reporting and compliance requirements.

What are the different sector codes?

Legal Sector Code
Defence Sector Code
Construction Sector Code
Agricultural Sector Code
Financial Sector Code
Information and Communication Technology (ICT) Charter
Property Sector Code
Integrated Transport Sector Code
Forestry Sector Code
Marketing, Advertising and Communication (MAC) Sector Code
Tourism Sector Code

Can a white-owned company be BBBEE compliant?

Yes, through strong performance in areas like Skills Development, Enterprise & Supplier Development, and Socio-Economic Development, white-owned companies can achieve significant BBBEE points—even without Black ownership.

What is fronting, and why must it be avoided?

Fronting is any attempt to misrepresent BBBEE compliance (e.g., appointing Black directors without authority or benefit). It is a criminal offense with serious legal and reputational consequences.

How often must I renew my BBBEE certificate?

BBBEE certificates are valid for 12 months from the date of issue and must be renewed annually.

What is the difference between an affidavit and a verification certificate?

EMEs and certain QSEs (100% Black-owned or 51% Black-owned) can submit a BBBEE affidavit.
Larger or non-Black-owned entities require a BBBEE verification certificate issued by an accredited agency.

How do I improve my BBBEE score?

Strategies include:

Introducing Black ownership structures.
Investing in training and development of Black employees.
Supporting Black-owned suppliers and enterprises.
Donating to socio-economic development initiatives.
Ensuring proper record-keeping and planning for compliance.

Please note that Pinion provides support and solutions in all of the above-mentioned areas.

What services are included for retainer clients?

Collect relevant information and populate the B-BBEE Management Information system.
Conduct an initial determination of current BBBEE score.
Advise client on achievable goals in relation to required spend on all elements including skills development, and assist client in the drafting and implementation of a BBBEE plan in order to ensure continuous improvement or to
maintain a BBBEE level.
Have regular meetings in order to assess that targets are met.
Prepare Client Portfolio as per SANAS requirements and act as authorised appointed representative with POA as
per R47 Rules.
The above also includes, but is not limited to the following:
1. Following up and collecting of supplier’s BBBEE certificates.
2. Assist client in collection of applicable documentary proof relating to donations (monetary and nonmonetary).
3. Provide suggestions in terms of spending on the Socio-Economic Development and Enterprise and Supplier elements.
4. Through ACS Academy, we can provide training and development including learnerships, apprenticeships,
  bursaries and short skill courses.

POPIA & PAIA

What is the POPI Act (POPIA)?

The Protection of Personal Information Act (POPIA) governs how personal data is collected, stored, used, and shared. It protects individuals’ data rights and promotes responsible, lawful data handling.

What is the PAIA Act?

The Promotion of Access to Information Act (PAIA) gives individuals the legal right to access information from public and private entities to ensure transparency and accountability.

Who Must Comply?

POPIA applies to any public or private body or person who processes personal information in South Africa.

Example:

A Trust – Trustees and Beneficiary details are stored and processed.
A Company/Sole trader/CC/Non-Profit that has any customers, employees, suppliers or stakeholders.

Who must ensure that the business complies with these acts?

The Information Officer.

Who should be appointed as the Information Officer?

The Information Officer of a business will be the Chief Executive Officer, Owner or equivalent officer, or any person duly authorised by the business.

Where do I lodge a complaint in case of a breach?

You can lodge a complaint on complaints.IR@justice.gov.za.

What is the role of the Information Regulator?

POPIA provides the Information Regulator teeth, granting it broad authority to investigate and penalize at-fault parties. The Information regulator registers the Information Officer, collects PAIA manuals and updates, receives complaints and acts on behalf of complainants.

I run a small business. Why must I adhere to the POPI Act?

The Act does not distinguish between small, medium and large businesses. Everyone is measured according to the same standard. All businesses and entities such as schools and churches have Personal Information in their possession and process such information and must comply.

What is the benefit for my business when I comply?

The benefit lies in the fact that you are operating lawfully in terms of South African legislation. It demonstrates an entities principals and ethical values. Consumer confidence studies have shown that in 90% of cases, consumers prefer to do business with companies that are ethical, transparent and comply with legislation.

What are the consequences of Non-Compliance?

Fines up to R10 million
Imprisonment up to 10 years
Civil lawsuits
Being barred from processing data
Reputational harm
Directors may be declared unfit to serve

Common POPIA Breaches

Sending personal info to the wrong email recipient
Losing unencrypted laptops or devices that have personal information saved
Collecting data without consent
Storing un-shredded sensitive data in general waste
Hacked databases or weak IT safeguards

How a PAIA Breach Can Occur

Refusing or delaying access to records without just cause.
Failure to publish or update your PAIA manual.
Not submitting the required annual PAIA report.
Not responding to a request for access within the specified timeframe

Consequences of a PAIA Breach

Court orders compelling information release.
Contempt of court charges for noncompliance.
Potential lawsuits and reputational harm

Skills Development

What is the purpose of the Skills Development Act?

Develop the skills of the South African workforce.
Improve the quality of life for workers.
Increase productivity and competitiveness.
Promote self-employment.
Redress historical imbalances in skills development access

What is a Skills Development Levy (SDL) and who must pay it?

The Skills Development Levy is a tax collected from employers to fund education and training initiatives.

Employers with an annual payroll exceeding R500,000 must register and pay 1% of their total payroll to SARS as SDL.
Some government departments, public entities and religious/public benefit organisations may be exempt

How can a Company benefit from paying Skills Development Levies?

Employers can claim back:

20% of the SDL paid by submitting a Workplace Skills Plan (WSP) and an Annual Training Report (ATR) to their relevant Sector Education and Training Authority (SETA).
Discretionary grants for learnerships, skills programmes, internships, and bursaries.
Tax incentives for learnership agreements.

What is a Workplace Skills Plan (WSP) and Annual Training Report (ATR)?

A WSP outlines the skills needs within the business and the planned training interventions for the year.
An ATR reports on the actual training conducted in the previous year.
These must be submitted annually to the relevant SETA (usually by 30 April each year) to access SDL rebates and
discretionary grants.

What is a SETA and what is it function?

A Sector Education and Training Authority (SETA) is a statutory body overseeing skills development within a
specific economic sector.

Functions include:

Accrediting training providers.
Allocating grants.
Implementing sector skills plans.
Promoting learnerships and apprenticeships

What is a learnership and how does it work?

A learnership is a structured learning programme combining theory and practical work experience, leading to a registered qualification.

Governed by a learnership agreement between employer, learner, and training provider.
Tax and grant incentives are available for participating employers.

Is Skills Development linked to Employment Equity Compliance?

Yes. Skills development forms a critical part of Employment Equity Plans for designated employers (50+ employees), particularly to:

Promote training and advancement for historically disadvantaged groups.
Meet Employment Equity Act targets.

What happens if an employer fails to comply with SDL or WSP/ATR submissions?

Non-compliance consequences:

For SDL: Penalties and interest from SARS.
For WSP/ATR: Loss of grant incentives and non-compliance with Employment Equity Act requirements.

What types of training can be claimed under Skills Development?

Eligible training includes:

Learnerships, internships, and apprenticeships.
Short courses and accredited skills programmes.
Adult Education and Training (AET).
Recognition of Prior Learning (RPL).

Training must be linked to the National Qualifications Framework (NQF) to qualify for grants.

Are small businesses exempt from Skills Development Levies and Skills reporting?

Yes and no.

Small businesses with an annual payroll under R500,000 are exempt from paying SDL.
However, if voluntarily participating in skills development initiatives, they may still access discretionary grants via SETAs.

What is discretionary funding and how can an employer access it?

Discretionary funding is grant funding allocated by SETAs for strategic training initiatives like learnerships, internships, and bursaries.
To access it:

Submit a detailed application to your SETA during their open window periods.
Comply with SDL payments and WSP/ATR submissions.
Priority is given to B-BBEE-aligned and historically disadvantaged beneficiaries.

What is the difference between a skills program and a learnership?

A skills programme is a short, focused training intervention that forms part of a full qualification.
A learnership is a full qualification-based programme combining structured learning with practical work experience.
Both are SETA-accredited but vary in length, complexity, and grant value.

Can training be conducted in-house or must it be via an external provider?

Training can be done in-house provided the training provider is accredited by a SETA or the Quality Council for Trades and Occupations (QCTO) for the applicable unit standards or qualifications.

Non-accredited in-house training won’t qualify for skills development grants or tax incentives. (There are however
some SETA’s that accept on the job training for these purposes).

What are the B-BBEE implications of Skills Development?

Skills development is a priority element on the B-BBEE scorecard, with:

A target spend of 3%–6% of payroll on training for black employees.
Specific weighting for disabled, youth, and rural learners.
Mandatory learnership and internship initiatives for better scoring.

Non-compliance with priority elements can result in a level discount on a company’s B-BBEE rating.

How are learnership tax allowances calculated?

Employers can claim:

R40,000 upfront and R40,000 on completion for each learner without a disability.
R60,000 upfront and R60,000 on completion for learners with disabilities.

This is separate from SETA grants and claimed via SARS tax returns.

What records must be kept for Skills Development compliance?

Employers should maintain:

SDL payment records.
Signed learnership agreements.
Proof of training attendance and completion.
WSPs and ATRs submitted.
Discretionary grant application records.
Tax rebate documentation for learnerships.

What is the role of a Skills Development Facilitator?

An SDF is responsible for:

Developing and submitting WSPs and ATRs.
Advising the business on training priorities.
Coordinating training initiatives.
Acting as a liaison between the employer and SETA.

Employers may appoint an internal or external SDF.

Can non-permanent employees (fixed-term, part-time, interns) be included in skills development initiatives?

Yes, any employee or learner participating in an accredited programme can be included for SDL rebate and SETA grant claims, provided proper contracts and training records are in place.

Speak to one of our experts

Natassja Barnard

natassja.barnard@pinionza.com

+27 (0)82 437 1498

Broad-Based Black Economic Empowerment (B-BBEE)

Employment Equity (EE)

Annual Training Reports & Access to Discretionary Grant Funding

POPIA & PAIA

Pinion Human Capital provides comprehensive Broad-Based Black Economic Empowerment (B-BBEE) consulting, helping businesses develop strategic plans that improve compliance, enhance scorecard performance and support long-term transformation goals. We guide clients through the entire B-BBEE process to ensure clarity, readiness and continuous improvement.

We assist organisations in meeting Employment Equity (EE) requirements through structured plans, audits, committee guidance, reporting and compliance monitoring. Our consultants support businesses from strategy to implementation, ensuring adherence to the Employment Equity Act and promoting workplace transformation that is both meaningful and compliant.

Our team specialises in developing Workplace Skills Plans (WSPs), compiling Annual Training Reports (ATRs), identifying skills gaps, designing training programmes and submitting SETA-related documentation. We also support clients in applying for discretionary grants, improving their chances of securing funding for skills development initiatives. These services ensure full SETA legislative compliance while helping organisations upskill their workforce through strategic training investments.

We provide guidance and support for businesses working to achieve full compliance with POPIA and PAIA. Our services include data protection policy development, compliance audits, risk assessments, and the implementation of secure information management systems. Our goal is to help businesses protect personal information, strengthen data governance and meet all necessary legal obligations.