Understanding the Workmen’s Compensation Fund in South Africa

Simónne Roodt
May 13
2 min read

The Workmen’s Compensation Fund is a government-managed fund established under the Compensation for Occupational Injuries and Diseases Act (COIDA). It is compulsory for all employers to register with the fund and make annual contributions.

The fund functions similarly to an insurance policy, offering financial protection to employers in the event that an employee is injured or contracts a disease while on duty.

What Does the Fund Cover?

It’s important to note that the Workmen’s Compensation Fund only covers employees. It does not provide cover for clients, patients, students, or members of the public who may be injured on your premises. For that type of risk, you would need public liability insurance.

In the event of an injury on duty, an employer can submit a claim to the fund. If approved, the Workmen’s Compensation Fund will cover or reimburse:

Medical expenses
Lost wages while the employee is unfit for duty
Death benefits to dependents, in cases where an employee passes away due to a workplace incident
Compensation for employees who contract certain work-related diseases

Registration and Annual Submissions

As an employer, you are required to register with the Compensation Fund within seven (7) days of hiring your first employee.

Each year, in April, you must submit your Return of Earnings (ROE). This includes:

The total salaries paid over the past 12 months
Your estimated salaries for the upcoming 12 months

Your contribution is calculated by multiplying your total payroll by your industry-specific risk factor, which is determined by the nature of your business and the likelihood of workplace injuries.

Once your payment is processed, you will receive a Letter of Good Standing, which serves as proof that your contributions are up to date and your business is compliant. This letter is required in order to lodge any claims with the Compensation Fund.

Need Assistance?

If you need help registering with the Workmen’s Compensation Fund, or submitting your annual Return of Earnings, or any related enquiries; please feel free to reach out. I’m here to assist you and ensure your business stays compliant.

I look forward to hearing from you!

Best regards,