COIDA Returns & Services

The compensation fund is a statutory fund mandated and administered by government. In South Africa, the Compensation for Occupational Injuries and Disease Act, often referred to as COIDA governs the registration and administration of work-place injuries and fatalities. The fund provides financial support to employees that suffer injuries, loss or become ill due to their occupation. If a worker is injured, becomes ill or dies due to a work-related accident, they or the family of the deceased can claim from the Compensation Fund. The COID return of earnings (ROE) need to be filed annually by all employers registered with the fund.

Why COIDA Returns are Mandatory for Employers

The Compensation for Occupational Injuries and Disease Act requires all employers in South Africa to register with the Compensation Fund.

• Protection to Employees: COIDA provides timely and adequate financial support to those in need, ensuring they can recover and rebuild their lives.
• Lawful Compliance: Failure to register and comply with the Occupational Injuries
  and Disease Act can result in penalties and legal consequences for employers.
• Letter of Good Standing: This will be issued once the business is up to date with the COIDA returns and payments. This letter is a requirement when contracting to other companies and government bodies.

Who should submit COIDA returns?

All employers in South Africa who hire one or more employees, including part-time workers,
contract workers and domestic workers must register with the Compensation Fund if :

• You have at least one employee.
• If you are involved in any type of work except some specific categories like domestic workers, the SANDF (South African National Defence Force) and the SAPS (South African Police Services).
• If you have a business establishment in South Africa and operates within the borders of South Africa, you are obligated to register.

Types of Compensation Provided for Under COIDA

The Compensation Fund under COIDA covers:

• Medical Expenses: Reimbursement of medical expenses for the treatment related to an occupational injury or disease.
• Temporary and Permanent Disability: The amount typically involves financial support to individuals who are unable to work or have reduced earning capacity due to a work-related accident.
• Death Benefits: The compensation payable to a dependent in the event that an employee dies either directly or indirectly from a compensable injury or sickness.

How COIDA Contributions are Calculated

The amount every employer annually pays to the Compensation Fund is calculated based on:

• Gross annual payroll : Reported by employers as the gross wages paid to employees.
• Industry assessment rate: COIDA uses a risk-based assessment method, with higher- risk industries paying higher rates.