Employment Equity Reporting South Africa 2026: Who Must Submit, New Sector Targets Explained

The Employment Equity Act is one of the most frequently misunderstood compliance obligations in South Africa. Many employers do not know whether they qualify as a “designated employer” required to report. Many who do qualify have not updated their Employment Equity Plans to reflect the new sector-specific targets that came into force with the 2025 amendments. And many are unaware that a new Compliance Certificate is now required for any business wanting to do work with the state.

Who must comply — the designated employer definition

The revised definition of designated employer excludes employers with fewer than 50 employees, regardless of turnover. From 1 January 2025, you are a designated employer if you employ 50 or more employees, or if you are an organ of stateregardless of employee count.

If you employ fewer than 50 employees, you are not required to prepare an Employment Equity Plan or submit annual EE reports. However, you can apply for a compliance certificate if you want to do business with the state.

What changed on 1 January 2025

1. Mandatory sector-specific numerical targets — The Employment Equity Amendment Act 2025 introduces mandatory five-year sectoral numerical targets for designated employers covering the period 1 September 2025 to 31 August 2030. Previously, employers set their own numerical targets. Now, the Department of Employment and Labour has set the targets for each sector.

2. Disability employment target increased — from 2% to 3% across all sectors. The definition of people with disabilities has been expanded to include people who have a long-term or recurring condition.

3. EE Compliance Certificate now required for state work — From 1 September 2025, certificates of compliance will be issued by the Department of Employment and Labour. These certificates, valid for 12 months, confirm that an employer has met its employment equity obligations.

The five-year EE Plan

Designated employers must develop and implement an Employment Equity Plan for the period 1 September 2025 to 31 August 2030. The EE Plan must include analysis of current workforce profile, numerical goals aligned with sector benchmarks, an affirmative action strategy, and a monitoring mechanism.

The reporting forms — EEA2 and EEA4

EEA2 — Annual Employment Equity Report documenting workforce profile, progress against targets, and workforce movements.

EEA4 — Income Differential Statement submitted alongside EEA2 to the National Minimum Wage Commission.

Submission deadlines for the 2026 reporting cycle

Online (EE System): Opens 1 September 2026, deadline 15 January 2027.

Manual: Opens 1 September 2026, deadline 1 October 2026.

Qualifying for the EE Compliance Certificate

To qualify for the EE Compliance Certificate, an employer must submit the Annual EE Report on time, show progress toward targets or provide justifiable reasons, comply with the National Minimum Wage Act for the previous 12 months, and have no CCMA rulings for unfair discrimination within the last year. Both designated and non-designated employers may apply.

Penalties for non-compliance

First offence: Up to 2% of annual turnover or R1.5 million (whichever is greater).

Second offence: Up to 4% of annual turnover or R1.5 million.

Third and subsequent offences: Up to 10% of annual turnover or R2.7 million.

What employers with fewer than 50 employees need to know

If you employ fewer than 50 employees, you are not required to prepare an Employment Equity Plan or submit annual reports. You must still comply with anti-discrimination and equal pay provisions under the Act. You may voluntarily apply for an EE Compliance Certificate if you want to participate in state tenders.

Frequently asked questions

My business has 45 permanent employees but uses 10 labour broker staff. Am I a designated employer?

The employee count includes all workers employed by your business, including fixed-term employees, but the treatment of labour broker workers depends on the specific arrangement. Seek specific advice from a labour law practitioner.

I submitted an EE report for the 2025 reporting cycle. Do I need to update my EE Plan?

Yes. Designated employers will be measured against their annual targets from the 2026 reporting period. Your EE Plan should be updated with specific numerical targets aligned with sector benchmarks.

Where do I find the sector-specific targets for my industry?

Published in the Government Gazette on 15 April 2025. Available on labour.gov.za and through the online EE reporting system.

What is the Economically Active Population and why does it matter?

The EAP is the demographic breakdown of the working-age population. It provides the benchmark against which your workforce representation is measured when setting numerical EE targets.