What is EAP?
Economically Active Population (EAP) targets. The EAP targets are based on statistical information collated by Stats SA, and compiled annually by the Commission for Employment Equity (CEE)
Your B-BBEE certificate consists of 5 elements that has targets based on different information within your company and financial standing.
Ownership – Black Male and Black Female economic and voting rights as a percentage of overall percentage ownerships
Management Control – Demographic Based that are in line with the EAP Targets
Skills Development – Demographic Based that are in line with the EAP Targets and also your annual Leviable amounts Skills Development Levies (SDL) as a percentage of your salaries paid to staff
Enterprise and Supplier Development
Procurement – Purchases or expenditure with an Entity with a valid B-BBEE certificate
Enterprise and Supplier Development – Percentages of the Annual Nett Profit After Tax (NPAT)
Socio Economic Development – Percentages of the Annual Nett Profit After Tax (NPAT)
The EAP targets can affect your overall B-BBEE scorecard if you do not develop a plan to combine the EAP targets to your B-BBEE elements of Management Control and Skills development.
Each province has its own set of EAP targets to ensure that all demographic targets are realistic for each entity that trades in specific province. For an entity trading in more than one province will be measured on the overall South African EAP targets.
So, Entities trading Western Cape versus entities trading in KwaZulu Natal targets per Skills Expenditure per Demographic group and Management Level representation of demographic groups targets will differ as can be seen below:
Ensure that your Workplace Skills Plan (WSP) and Annual Training Report (ATR) links with your Employment Equity (EEA) reports annually.
This ensures that if you have a shortfall on your Management Control Scorecard points, you can train staff per the EAP on your lower management positions reported on the EEA report to secure and increased Skills Development points and Employment Equity scorecard.
Make sure to contact us for assistance with your Employment Equity, Workplace Skills Plan, Annual Training report Submissions and Your quarterly Gap Analysis and Snapshots to ensure you maximise your B-BBEE points and B-BBEE level.
Article By:
Francois Le Sueur: Executive Consultant - Compliance Hub