2025 EE Regulations and Sectoral Numerical Targets

2025 EE Regulations and Sectoral Numerical Targets

• 22 April 2025
• Regulatory Compliance and Legislation
• South African Accounting Academy

Summary:

The Minister of Employment and Labour repealed the Employment Equity Regulations of 2014 and, pursuant to Section 55(1) of the Employment Equity Act, 1998, promulgated the Employment Equity Regulations, 2025. In addition, in terms of Sections 15A(1) and (2) of the Act, the Minister published a notice identifying national economic sectors and determining the applicable sectoral numerical targets, which take effect from 15 April 2025.

Article:

The published Regulations include:

1. General Administrative Regulations. These regulations provide standardised reporting forms (EEA2 and EEA4 forms); templates for EE Analysis (EEA12) and EE Plans (EEA13); enforcement tools; and templates for the EE Certificate of Compliance, including the intention to withdraw the EE Certificate of Compliance. These Regulations offer implementation guidelines to assist employers and employees in interpreting and applying the provisions of the EE Amendment Act, of 2022, including streamlining compliance processes for designated and non-designated employers.
2. Regulations on Sector Numerical EE Targets. These Regulations establish the actual five-year sector numerical EE targets for designated groups across eighteen economic sectors for the four upper occupational levels (i.e., Top Management, Senior Management, Professionally Qualified/Middle Management, and Skilled Technical/Junior Management), including for persons with disabilities.

The introduction of sector-specific numerical EE targets is a significant component of section 15A of the EE Amendment Act, 2022, which empowers the Minister to regulate EE targets for the identified eighteen (18) economic sectors.

The 2025 Regulations introduce significantly more robust compliance obligations and stricter enforcement mechanisms, with a particular emphasis on the newly established five-year sectoral numerical targets. Designated employers are now required to develop and implement an Employment Equity (EE) Plan covering the period from 1 September 2025 to 31 August 2030. Employers who become designated after 1 April 2025 are required to formulate an EE Plan for the remaining duration of this period.

The EE Regulations are effective from 15 April 2025.

In preparing an EE Plan as contemplated under Section 20 of the Act, designated employers must refer to the relevant Codes of Good Practice issued under Section 54. The EE Plan must, at a minimum, include all elements set out in the EEA13 template as prescribed in the 2025 Regulations. When developing EE Plans and setting annual numerical targets in their workplaces in terms of Section 20(2) of the EEA, designated employers must take into account:

1. their workforce profile,
2. the relevant 5-year sectoral numerical targets; and
3. the applicable EAP.

Click here to download the Regulations & Targets:

• Employment Equity Regulations (99 pages) https://www.gov.za/sites/default/files/gcis_document/202504/52515gon6125.pdf
• Sectoral Numerical Targets (8 pages) https://www.gov.za/sites/default/files/gcis_document/202504/52514gon6124.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• The Employment Equity Amendment Act and Regulations is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• As an employer with more than 50 employees, you also need to comply with EE in your workplace.

Relevance to Your Clients:

• An entity with more than 50 employees (company or close corporation) has a duty to comply with the Employment Equity Act, and directors have to fulfil their duties accordingly, otherwise they could be held liable.

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