The Compensation for Occupational Injuries and Diseases Act (COIDA) provides compensation to employees who are injured at work or contract occupational diseases. All employers (except domestic employers) must register and contribute.
Who Must Register
All employers who employ one or more workers must register, except:
- Domestic employers
- Employers whose workers are covered by other schemes (mining, railways)
Penalties apply
Failure to register can result in fines and personal liability for injuries.
How to Register
Step 1: Complete Registration
- Download form W.As.2 from the Compensation Fund website
- Complete employer details
- List all work activities
Step 2: Submit
- Email to: CFRegistrations@labour.gov.za
- Or deliver to nearest Labour Centre
Step 3: Receive Assessment
- The Fund will assess your industry class
- You’ll receive a registration number
- Assessment rate will be assigned
Assessment Rates
Your assessment rate (percentage of earnings) depends on your industry:
| Industry Class | Typical Rate |
|---|---|
| Administrative/Office | 0.11% - 0.31% |
| Retail | 0.34% - 0.68% |
| Manufacturing | 0.91% - 2.73% |
| Construction | 1.82% - 5.46% |
| Mining | Separate scheme |
The exact rate depends on your specific activities and claims history.
Calculating Your Assessment
Annual assessment = Total annual earnings × Assessment rate ÷ 100Example: Company with R2,000,000 annual payroll at 0.91% rate:
- R2,000,000 × 0.91% = R18,200 annual assessment
When to Pay
- Annual assessment due by end of March
- Return of Earnings (W.As.8) due by end of March
- Penalties for late payment
Calculate early
Complete your Return of Earnings in January/February to avoid the March rush.
What COIDA Covers
Injuries
- Accidents at the workplace
- Accidents while commuting (in employer transport)
- Work-related accidents off-site
Diseases
- Occupational diseases caused by work
- Conditions worsened by work
- Listed in COIDA schedules
Benefits
| Benefit | Coverage |
|---|---|
| Medical expenses | 100% of reasonable costs |
| Temporary disability | 75% of earnings (up to limit) |
| Permanent disability | Lump sum or pension based on % disability |
| Death | Pension to dependants, burial expenses |
How to Claim
For Employers
- Report injury within 7 days (form W.Cl.2)
- Provide first medical report (W.Cl.4)
- Submit to Compensation Fund
- Facilitate employee’s claim
For Employees
- Report injury to employer immediately
- Seek medical attention
- Employer submits claim on your behalf
- Follow up with Compensation Fund
Keep records
Document everything: photos of injury, medical reports, witness statements, and all correspondence.
Letter of Good Standing
Many contracts (especially government) require a Letter of Good Standing. This proves:
- You’re registered with the Compensation Fund
- Your assessments are paid up
- You’re compliant with COIDA
How to Get One
- Ensure all assessments are paid
- Submit Return of Earnings
- Request letter via email or Labour Centre
- Processing takes 5-10 business days
Common Questions
Does COIDA replace UIF?
No, they cover different things:
- COIDA: Workplace injuries and occupational diseases
- UIF: Unemployment, maternity, general illness
Both require registration and contributions.
What if an injury was the employee’s fault?
COIDA is no-fault insurance. Employees are covered regardless of who caused the accident, unless:
- Intentional self-harm
- Under influence of drugs/alcohol
- Serious misconduct
Can employees sue the employer?
Generally no. COIDA provides the exclusive remedy. However, claims against third parties (not the employer) may be possible.