Department of Employment and Labour - 2025 Employment Equity Regulations and Sectoral Targets
On 15 April 2025, The Department of Employment and Labour officially released the final Employment Equity Regulations and Sector-Specific Numerical Targets, following the commencement of the Employment Equity Amendment Act on 1 January 2025. This milestone marks a pivotal advancement in South Africa’s ongoing efforts to build a more inclusive, representative, and equitable workforce across all sectors of the economy.
According to the Department, the release of the Regulations is the culmination of an extensive consultative process with business stakeholders, organised labour, and the Commission for Employment Equity (CEE).
Key Highlights of the 2025 Employment Equity Amendments and Regulations:
Sector-Specific Numerical Targets:
The regulations introduce five-year EE targets tailored to 18 key sectors of the economy. These targets are designed to accelerate transformation and address historical inequities by promoting fair representation of designated groups, particularly Black people, women, and people with disabilities.
Annual Employer Targets:
While broad sectoral targets are now in place, designated employers maintain the flexibility to set their own annual EE targets, as long as they align with the overarching five-year sectoral goals and the Economically Active Population Statistics.
Support for Small Businesses:
Employers with fewer than 50 employees are exempt from Chapter III of the EE Act, regardless of their turnover. This exemption aims to ease administrative burdens and encourage job creation within small and emerging enterprises.
Mandatory Compliance Certificate for State Contracts:
In terms of Section 53 of the amended EE Act, designated employers must secure a Certificate of Compliance from the Department of Employment and Labour in order to be eligible for participation in state tenders and contracts.
No Quotas or Retrenchments Required:
The Department has reiterated that the EE targets are not rigid quotas. Employers are not permitted to terminate or retrench employees to meet transformation targets. Instead, the focus is on equitable recruitment, retention, and promotion practices.
The 2025 EE reporting season will open on 1 September 2025, during which designated employers must report on their progress and plans in line with the new regulations.
For more information, please reach out to the BEE Chamber at www.bee.co.za.
