Do contributions to employees of the Measured Entity qualify for BEE scoring?


Can black employees of the Measured Entity qualify as beneficiaries of Socio-Economic Development Contributions if the contributions are in line with Annexe 500(A) and if the benefits do not form part of the employee’s conditions of employment / contract? i.e. If the contributions are a form of support for employees (for example subsidised rental / housing costs, provision of building materials & labour towards building a house, provision of healthcare facilities / medical costs especially related to HIV/AIDS treatment).

BEE Commissioner's Response:

SED consists of monetary or non-monetary contributions, with the specific objective of promoting access to the economy for black people. SED is not the same as Corporate Social Investment or fringe benefits to the employee by the employer. The Benefit Factor matrix provides guidance as to what qualifies as an SED initiative. This is measured on an annual basis, meaning that the measured entity will contribute 1% NPAT annually towards SED initiatives.

The example given has not provided information as to how medical costs would increase the access of black people to the mainstream economy.

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