Melissa Cogger and Talita Laubscher | April 23, 2025
On April 15, 2025, the Minister of Employment and Labor announced that it had decided to target the number of sectors (Target Regulations for the Final Sector)and 'Employment Equity Regulations, 2025' (General Controlled EE Regulations),, Abolishing the 2014 Employment Stock Regulations (collectively, 2025 EEA regulations).
The 2025 EEA regulations have been made public following the 2022 Employment Equity Amendment Act (Modification) It came into effect on January 1, 2025, and discussions took place between the Ministry of Employment and Labor.dwelland representatives of various sectors.
In final sector target regulations, the Minister identified 18 national economic sectors and set numerical targets for each sector. The ultimate objective of these sector goals is to ensure fair expression of properly qualified people from designated groups.
Regarding Section 20(2a)(2a) of the Employment Equity Act, 1998EEA) The numerical target set by an employer must adhere to the sector goals applicable to that employer and is one of the measures taken in the assessment of compliance from the perspective of Section 42(1)(AA).
Furthermore, the Minister may issue a Certificate of Compliance only with regard to Section 53 of the EEA, especially if the employer is satisfied that the employer is in compliance with the sector goals applicable to that employer.
The enforcement of these sectors' goals will have a significant impact on the ability to do business with designated employers and states.
Additionally, fines and penalties may apply to violations of sector goals unless there is a valid reason for such violations of compliance.
History Behind the Target
As shown below, the timeline and process that led to finalizing the sector's targets included several stages.
On September 21, 2018, 18 sectors were identified by Doel through the publication of the draft regulations.Draft 2018 EEA Regulations). These 18 sectors remain unchanged and are based on a broad classification of standard industrial classification codes.
Following the table of Employment Equity Amendment Bills in Congress, various meetings were held with stakeholders for sector targets that were based on sector charters published under the broad Black Economic Empowerment Act of 2003 (2003) during the period from 2019 to 2022 (BBBEE ACT).
The President only signed the Act on April 6, 2023 to the Act on the Employment Stock Amendment Bill. It is known that the amendment Act will be promulgated and effective at a later date, January 1, 2025.
Target was published on May 12, 2023 for public comment (2023 Draft Sector Target) February 1st, 2024 (2024 Draft Sector Target). Such publications occurred despite the amendments not yet in place.
The amendment came into effect on January 1, 2025, and Section 15A of the EEA empowers ministers (following the multi-stage process of consultation) to target the sector.
In February 2025, Doel held a virtual meeting with stakeholders in 18 sectors, inviting written representation within a rapid time frame for the new proposed draft target (2025 Draft Target). These 2025 draft targets have not been published for public comment.
Following the virtual meeting, in February and March 2025, various stakeholders called for and enforced bilateral involvement with Doel as a means of discussing the rationale underlying the 2025 draft target and the rationale for sector identification. The sectors have not changed since the sector was first identified in the 2018 EEA Draft Regulations, despite statements by various organizations that they are prevalent and do not take into account the unique circumstances of the subsectors.
Finally, the sector's goals were published in their final format on April 15, 2025 (Final Sector Targets), no further period for public comments has been provided, and without publishing targets for these final sectors in draft format.
Similar to the 2024 draft sector goals, final sector goals are generally set for men and women in the “designated groups” and are not further divided into population groups.
Furthermore, as previously recorded in the 2024 draft sector goal, the five-year sector goal is not intended to add up to 100%. The sector's numerical targets exclude undisabled white men and foreigners as part of their workforce profiles.
When determining annual employment equity targets for achieving the five-year sector numerical target, designated employers must set numerical targets for all groups designated for each of the four upper occupational levels, in relation to the applicable sector target and economically active population (EAP), and for people with disabilities.
General Administrative EE Rules state that the way designated employers must consider sector goals and apply positive action measures is documented in the EEA, general administrative regulations, and the Code of Excellence issued under the EEA.
Comparison of 2024 draft sector targets and final sector targets
The following is noteworthy when comparing the 2024 draft sector targets with the final sector targets:
Overall, the final sector goal is significantly higher than the 2024 draft sector target, with a significant increase, especially for women in the designated group. For example, women's targets for senior management positions in the finance and insurance sector increased by 21.3% compared to the 2024 draft sector target. The goals set for senior management women increased significantly in the professional, scientific and technical activities sectors as well. Conversely, there were some reductions in male targets in the specified group.
The goal for people with disabilities has increased from 2% to 3% in all sectors.
Some of the principles agreed between the South African government and the Solidarity Trade Union in 2023 are not found in the 2025 EEA regulations, which were included in the 2024 draft target. For example, the 2025 EEA regulations do not explicitly include principles.”No employment termination of any kind may be carried out as a result of positive actions.. “That principle”Positive behavior shall be applied in a subtle way” is also missing from the 2025 EEA regulations, but the regulations outline guidelines for implementing positive actions.
Unlike the 2024 draft sector target, Doel is the final sector target and does not explain what factors were taken into account when setting the five-year sector target. For example, it does not refer to the dynamics of the various sectors published under the latest workforce profile statistics, EAP, BBBEE Act, or its own sectors.
As with the 2025 draft sector goals, guidance will be provided regarding overrepresentation of specific groups. The 2025 General Administrative EE Rules discourage a designated employer from perpetuating overexpression in any group if it exceeds the applicable EAP at a particular occupational level.
In situations where the designated employer exceeds sector goals, more information will be provided. For example, if a designated employer exceeds the numeric target set of a given designated group at the occupational level, you must continue to set up targets to maintain compliance with the EAP. There is no longer a ban on “regression” for certain race/gender groups included in the 2024 sector target draft.
Designated employers operating in multiple states can employ EAPs from multiple states, taking into account the nature of their operations and geographical area. This was not previously permitted in the 2024 draft regulations.
Revised target rationale
For various sectors, the final sector goals are the same as those shared by Doel during the virtual meeting held in February 2025, and are not changed despite the representation and bilateral involvement. Importantly, these draft targets shared in February 2025 are Government official news For public comments.
Doel explained at the meeting that the 2025 draft target was based on feedback received in the previous general participation process, latest workforce profile statistics and sector dynamics.
Doel showed that the rationale for the draft target change was due to a variety of sectors that were steadily comparing and exceeding the 2024 draft sector targets during the last reporting period, due to the fact that this appears to explain the targets of the significantly increased final sector.
In some of the engagement and bilateral involvement, Doel further explained its rationale and “prescription.” Doel has reviewed workforce profiles for various sectors for 2023 and 2024. We then set targets for the top four occupational levels at 6%, 7%, 8% and 9%, respectively. This appears to be based on Doel's view that these are the appropriate targets.
Therefore, the targets for the final sector appear to have not been developed scientifically or empirically. Challenges arise when subsector workforce profiles are considered. In some cases, the targets are much higher than the 6%-9% principle applied by the DOEL, and compliance with the sector's targets becomes the challenge for these sub-sectors.
Comfort for designated employers
Section 20 (2A) considers compliance with distrust with final sector goals when setting numerical targets, but should take comfort in the established principles of Employment Equity Act, interpreted and developed by our courts.
In this regard, Section 15(3) explicitly states that while positive behavioral measures include priority treatment and numerical targets, it should not eliminate quotas and not have absolute barriers to the appointment or promotion of overrepresentation groups.
We also need to pay tribute to the legitimate reasons for non-compliance, which is repeated in general administrative EE regulations that remain unchanged from the 2024 sector target draft.
“Disclaimer – the views and opinions expressed in this article are the views of the author and are not necessarily those of the Bee Room.”
