COIDA – regulations and amendments
COIDA – Tariffs of assessment
During November 2020 the Minister of Employment and Labour approved new regulations relating to the tariffs of assessment under the Compensation for Occupational Injuries and Diseases Act (COIDA). These tariffs, in combination with a business’s declared payroll, are used to calculate the business’s account payable annually to the Compensation Fund. These tariffs are associated with an industrial asset class (business industry) and the higher the risk of getting injured, the higher the tariff. There are currently 13 different asset classes.
Once a business declares its annual payroll to the Compensation Fund, an account is issued which is payable within 30 days. The declaration for 2021 must be done between 1 April 2021 to 31 May 2021 and during this period businesses must declare what their payroll was from 1 March 2020 to 28 February 2021 and estimate what it will be from 1 March 2021 to 28 February 2022.
Important to note: businesses must declare payroll up to only R484 200.00 until 28 February 2021 and R506 472 until 28 February 2022. Failure to declare the payroll, as well as make payment within 30 days will result in a penalty of 20% based on the assessment. This can have a huge impact on the cash flow of any business. During 2018/2019 close to R1 million was calculated in penalties by the Compensation Fund.
Companies who are not in a position to pay their full account, can apply within 30 days of the account being issued for a payment arrangement with the Compensation Fund.
COIDA – Injury on duty
Benefits payable in terms of COIDA include:
- Payment of salaries to injured employees (refund of paid salaries to employers)
- Permanent disability
- Medical expenses, including chronic medication
- Death benefits: funeral benefits and pension to widow/widower/children
- No compensation is payable for pain and suffering
COIDA – Amendments under review
- Failure by the employer to report an accident within seven days will result in a 10% penalty of the declared annual payroll.
- Failure by the employer to complete the Employer’s Report of Accident in full will result in a penalty equal to the full amount of compensation plus interest.
- Failure by the employer to pay an injured employee his/her salary while off duty for more than four days will result in a penalty equal to double the full amount of three months’ compensation plus interest.
- Failure by the employer to transport an injured employee to the nearest doctor will result in a fine equal to the full cost of the conveyance.
- Failure by the employer to keep a record of an employee’s earnings will result in a penalty of 10% of the actual or estimated annual earnings.
COIDA – What about domestic workers?
COIDA and the LWO
As a registered employer’s organisation with the Department of Employment and Labour, the LWO specialises in labour law and can therefore only assist employers in this particular field. We do however always explore opportunities to take hands with service providers in other specialist fields to put solutions on the table for our members. Contact Stephan Pietersen from Work Accident Support for COIDA assistance: 064 360 2638 | email@example.com.
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