Construction size limits cut: what Vaal builders need to know
South Africa's new small business size rules raised the turnover limits in most sectors on 27 May 2026. Construction went the other way. Here is what changed for builders, what it could mean for a Vaal contractor, and the bigger question it opens.
By Staff Reporter · Published
As at 3 November 2026.
- Construction goes the other way. In most sectors the limits went up. In construction, the small and medium ceilings went down: small fell from R75m to R40m, and medium from R170m to R150m.1,2
- Some builders change size band. A Vaal building contractor turning over, say, R50m used to count as small. Under the new table it counts as medium.1,2
- There is no official word yet on the effect. We could not find any official statement on how this affects construction contractors’ access to small business programmes.
What changed
Since 27 May 2026, size is set by the minister’s Final Regulations Setting the Criteria Determining the Classification of Micro, Small and Medium Enterprises, made under the National Small Enterprise Act, 1996, which most people call the Small Business Act. They were published in Gazette 54750 on 27 May 2026.3,1
Two tests apply: the number of full-time-equivalent paid employees and total annual turnover. The employee bands are the same in every sector: micro 0–10, small 11–50, medium 51–250.1 The turnover ceilings depend on your sector. The 2019 figures are shown in brackets so you can compare.1,2
| Sector | Micro (turnover up to) | Small (up to) | Medium (up to) |
|---|---|---|---|
| Construction | R10m (R10m) | R40m (R75m) | R150m (R170m) |
The bigger question
Look at construction. In most sectors the limits went up. In construction, the small and medium ceilings went down: small fell from R75m to R40m, and medium from R170m to R150m.1,2 A Vaal building contractor turning over, say, R50m used to count as small. Under the new table it counts as medium.
That opens a bigger question: what the lower ceilings mean for contractors who use small business programmes. We could not find any official statement on how this affects construction contractors’ access to small business programmes. Nation Watch SA has asked the Department of Small Business Development how the lower construction ceilings affect contractors and will update this story once it responds.
What the table does not decide. This is the definition used by the small business law and the programmes linked to it. Other systems, such as B-BBEE, use their own size tests.
What we know
- New micro/small/medium thresholds have applied since 27 May 2026, and the old size table has been repealed.4,3,1
- The construction ceilings for small and medium went down, not up.1
What we don’t know
- How the lower construction ceilings affect contractors’ access to small business programmes. We found no official statement.
What to do next
- Work out your size. Find your sector in the table above. Count your full-time-equivalent paid staff and check your last annual turnover.1
Read more
- Series guide: Vaal small business guide: the Small Business Act and Spaza Shop Support Fund explained
- New SMME size limits explained
- Sedfa explained
- Small Enterprise Ombud explained
- How the Small Business Act changed, 1996 to 2026
- Spaza Shop Support Fund: what you can get and who qualifies
- How to apply for the Spaza Shop Support Fund
- Emfuleni business licence checklist explained
- Spaza fund, TREP, TEPF or Township Enterprise Fund?
- Final regulations setting the criteria determining the classification of micro, small and medium enterprises, Government Gazette 54750, pp 5–6 (27 May 2026; signed 11 April 2026; scan of the Gazette hosted by a law firm)
- Revised Schedule 1 of the National Definition of Small Enterprise (GN 399), Government Gazette 42304, gov.za (15 March 2019)
- National Small Business Act: micro, small, medium enterprise classification criteria replaced, SA Legal Academy (27 May 2026)
- Section 8 of National Small Enterprise Amendment Act in effect, GoLegal / Sabinet (29 May 2026)
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