WeThinkCode_ Learnerships and BEE
The WeThinkCode_Software Development Program is accredited with the MICT SETA for an NQF Level 5 National Certificate, and directly supports Skills Development (SD). We are a Level-1 contributing, Not-For-Profit company, with Public Beneficiary Organization status, which means we can also issue Section 18A certificates on any financial contribution you would like to claim as Socio-Economic Development (SED) spend.
South African companies are required to spend a specified percent of their total payroll on SD. Sponsoring and employing WeThinkCode_ interns and graduates offers an immediate solution to most businesses. If a business needs to improve its overall score card and already has fulfilled its SD obligations, then additional expenditure (as a percentage of net profit after tax) on SED can be helpful.
Spending on Skills Development
Skills Development is a priority element on the BEE Scorecard, counting for up to 25 points out of 100. This applies to both large companies (above R50m turnover) and qualifying small enterprises (QSE’s),
The Skills Development Scorecard includes a specific Learnership category (offered by accredited providers) for both employees and unemployed BEE candidates, making accredited Learnerships through the WeThinkCode_ program the most effective way to recognise BEE Skills Development points.
With a Learnership, your company will be able to claim the training expenditure (and in some cases stipend pay to the Learner) while participating in the accredited Learnership Programme. EAP (economically active population) targets are applicable to the Skills Development Scorecard and WeThinkCode_, with its focus on diversity and inclusion, easily meets the industry average diversity statistics.
The Skills Development Scorecard measures monetary spend on black candidates as well as the number of black people who are enrolled in Learnerships and/or structured work-based learning programmes. In other words, the Skills Development Scorecard applies to hitting targets on (i) expenditure for training (compared to total payroll) and (ii) headcount (compared to total headcount) for the number of people who receive training. It is also possible to earn points by training non-employed black candidates. Certain sector scorecards require training to be ICT skills training in order to count, and WeThinkCode_ meets this requirement.
Large Companies need to spend 6% of the total payroll on training for BEE Candidates, and the requirement for QSE’s is 3% of the total payroll. This earns 8 points on the BEE scorecard.
The headcount requirement is 2.5% of your total staff, rounded up to the nearest integer - i.e. 2 people if you have up to 80 staff. As an example, a staff complement of 400 would require 10 learnerships. By placing the requisite number of candidates on a learnership, you can earn 8 points.
Bonus Points for Employment
A further 5 points can be earned if the WeThinkCode_ Learners are employed at the end of their Learnership. This can be on a fixed term contract or on a permanent basis. Also note that the Learner does not need to be employed by your company – if the Learner gets employment by another company, you can also get the bonus points. At WeThinkCode_ we work with a range of SME businesses that are eager to absorb any excess students you have sponsored to maximise your absorption, and we have a 93% placement rate of graduates.
SETA Rebates and Tax Incentives
Companies that implement Learnerships also qualify for rebates and incentives, including deductions as per section 12 H of the Income Tax Act as well as Youth Wage Subsidy incentives. Companies with Workplace Skills Programmes in place may also apply for Discretionary Grant Funding as well as Mandatory SETA funding.
For example, MICT SETA provides a discretionary training grant (including stipend) of up to R 53 000 per Learner. Tax Incentives for NQF Level 5 Programmes totals R80k per Learner, deducted in two equal parts (on commencement and completion of the Programme).
What is BEE Socio-Economic Development?
In terms of the B-BBEE Codes of Good Practice, the objective of Socio-Economic Development (SED) contributions is the promotion of sustainable access for beneficiaries to the economy. SED contributions count are any monetary or non-monetary contribution implemented for individuals or communities, where at least 75% of the full value benefits black people. In most sectors SED contributions qualify for up to 5 points of the BEE Scorecard, and significantly higher at 12 points in the ICT Sector, with the specific aim to address the digital skills gap.
WeThinkCode_ focuses specifically on recruiting and enrolling applicants from under-served communities. Through our innovative training methodology, WeThinkCode_ensures that our students acquire the critical technical and workplace skills required for a career in software development. 82% of the WeThinkCode_ candidates meet the BEE criteria meaning your SED contributions are safely within the threshold.
100% of Socio-Economic Development grants made to WeThinkCode_ are recognized for the BEE Scorecard.