Unpacking the final employment equity sector targets in South Africa

ON 15 APRIL 2025, the Minister of Employment and Labour published the 'Determination of Sectoral Numerical Targets' (Final Sector Target Regulations) and the 'Employment Equity Regulations, 2025' (General Administrative EE Regulations), which repeal the Employment Equity Regulations, 2014 (collectively, the 2025 EEA Regulations).

- MELISSA COGGER

The 2025 EEA Regulations are published, following the Employment Equity Amendment Act, 2022 (Amendment Act) coming into effect on 1 January 2025, and the purported consultations that took place between the Department of Employment and Labour (DoEL) and representatives of various sectors.

In the Final Sector Target Regulations, the Minister has identified 18 national economic sectors and set numerical targets for each sector. The ultimate purpose of these sector targets is to ensure the equitable representation of suitably qualified people from designated groups.

In terms of section 20(2A) of the Employment Equity Act, 1998 (EEA) the numerical goals set by an employer must comply with any sector target that applies to that employer and is, in terms of section 42(1)(aA), one of the measures that is considered in the assessment of compliance.

Further, the Minister may only issue a certificate of compliance in terms of section 53 of the EEA if the Minister is satisfied that, among other things, the employer has complied with a sector target that applies to that employer, and if it did not, there were justifiable reasons for non-compliance.

The enforcement of these sector targets will have significant impact on designated employers and their ability to do business with the State.

Further, fines and penalties may apply for non-compliance with sector targets unless a justifiable reason exists for such non-compliance.

History behind the targets

The timeline and process leading to the finalisation of the sectoral targets involved several stages, as set out below:

■18 sectors were identified by the DoEL on 21 September 2018 through the publication of draft regulations (Draft 2018 EEA Regulations). These 18 sectors have remained unchanged, and are based on the broad categorisation in the Standard Industrial Classification Codes.