On 15 April 2025, the Minister of Employment and Labour, Nomakhosazana Meth, announced two major regulatory developments in the Government Gazette that will significantly reshape South Africa’s employment equity compliance landscape:
- The Employment Equity Regulations, 2025, which replace the 2014 version; and
- The official Sectoral Numerical Targets, issued under section 15A of the Employment Equity Act, 1998 (EEA), as amended.
These changes apply across both public and private sectors and aim to accelerate transformation through measurable and sector-specific benchmarks.
New Employment Equity Regulations: Key Highlights
The updated 2025 Regulations introduce a stricter compliance regime for designated employers, particularly around planning, target-setting, and public procurement eligibility. Here’s a breakdown of the key provisions:
1. Employment Equity Plan Obligations (Regulation 9)
Designated employers must develop and implement a five-year Employment Equity Plan (EE Plan) for the cycle beginning 1 September 2025 and ending 31 August 2030. The plan must align with:
- The employer’s current workforce profile;
- The new five-year sector-specific numerical targets; and
- The regional or national Economically Active Population (EAP) statistics.
Employers newly classified as “designated” after 1 April 2025 must still formulate EE Plans aligned with the remaining period of the cycle (until 31 August 2030).
When setting annual targets for underrepresented groups at the top four occupational levels, employers must also account for representation of persons with disabilities. If any group is currently over-represented, its status must be maintained in proportion to the EAP.
Employers must apply the targets relevant to the economic sector in which the majority of their workforce operates.
2. First-Year Reporting Exemption (Regulation 10)
Organisations that become designated employers after 1 April 2025 are not required to demonstrate sectoral target compliance in their first submission under the new EE Plan.
3. Compliance Certificates for State Contracts (Regulation 16)
To do business with the State, employers must possess a valid Employment Equity Compliance Certificate as required by section 53 of the EEA. This certificate can be requested online following the submission of the annual EE report under section 21 of the Act.
If an employer fails to meet sectoral targets, they must explicitly rely on one of seven permissible justifications for non-compliance. For the first time, adherence to employment equity obligations is directly linked to public procurement eligibility.
4. Withdrawal of Compliance Certificates
An EE Compliance Certificate, valid for 12 months, may be revoked at any time if it was granted based on false or misleading information or if the circumstances under which it was issued change. Once withdrawn, the employer becomes ineligible for State contracts.
Sectoral Numerical Targets: A New Era of Measurable Transformation
The newly gazetted sector targets apply across 18 key national economic sectors, setting numerical representation goals over a five-year period (ending 31 August 2030). These targets cover four occupational levels:
- Top Management
- Senior Management
- Professionally Qualified and Middle Management
- Skilled Technical and Junior Management
In addition, a 3% target for employees with disabilities has been introduced, applying across the total workforce.
The targets are customised to reflect the demographic realities of each sector and serve as the foundation for evaluating EE Plans and issuing compliance certificates.
Sectors covered include:
- Agriculture, Forestry & Fishing
- Accommodation and Food Services
- Construction
- Manufacturing
- Mining & Quarrying
- Financial & Insurance Services
- Public Administration
- Education
- Health & Social Work
- Information & Communication
- Wholesale & Retail Trade
- Transport & Storage
- Real Estate
- Arts, Entertainment & Recreation
- Water Supply, Waste & Sanitation
- Energy & Utility Services
- Professional, Scientific & Technical Services
- Administrative & Support Activities
Next Steps for Employers
The newly issued sector targets and updated regulations demand immediate attention from designated employers. With the 1 September 2025 implementation date fast approaching, employers must:
- Assess their existing workforce profile;
- Identify any gaps in representation across occupational levels;
- Draft or update their EE Plans in accordance with the new benchmarks; and
- Prepare to justify any shortfalls in compliance when applying for State tenders.
Note:
A “designated employer” includes any entity with 50 or more employees, any municipality (under Chapter 7 of the Constitution), an organ of state (excluding the SANDF, State Security Agency, and National Intelligence), or an employer deemed designated under a binding collective agreement in terms of the Labour Relations Act 66 of 1995.
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