The five-year sectoral numerical targets are only applicable to employers with a workforce of 50 or more employees, classified as “designated employers” per the Employment Equity Act 55 of 1998 (EEA).
The newly published Employment Equity sectoral numerical targets, effective from 15 April 2025, together with the recently published Employment Equity Regulations, require designated employers to align their Employment Equity plans with the Minister’s specific targets across four upper occupational levels and in eighteen different sectors.
Favourably, the new targets for suitably qualified people living with a disability have increased from 2% to 3 % across all sectors – a game changer and progressive measure for South Africa’s pursuit of equality.
Employers will be required to prepare and implement an Employment Equity Plan for the period from 1 September 2025 to 31 August 2030. A designated employer must also submit an annual report to the Director-General on progress towards achieving these targets.
All employers intending on conducting business with an organ of state will be required to, amongst other things, comply with the targets, implement their Employment Equity Plan and obtain a compliance certificate valid for 12 months to avoid termination of their agreement with the state.
Designated employers are required to complete a workplace analysis and formulate revised Employment Equity Plans following the amended legislative framework by no later than 31 August 2025.
Non-adherence can invite penalties of up to the greater of R2 700 000 or 10% of the employer’s annual turnover, depending on previous contraventions, unless reasonable cause for failure to comply can be demonstrated.
Importantly, labour inspectors will also be deployed to ensure compliance with the new changes and are mandated to issue compliance orders against defaulting employers, which can potentially result in costly litigation in the Labour Court.
Employers should act now to review and update their current Employment Equity Plans in line with the newly introduced sectoral targets. With strict deadlines, potential penalties, and increased scrutiny, the question isn’t whether your business should prepare, it’s whether you’re ready.
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