Do you need to do your Company’s COID Registration? COID Registration takes place at the Workmans Compensation Fund’s Offices in Pretoria. We have offices close to theirs and can assist you to get a COID Registration Number @ Only R1490 within 2 weeks. Or you can buy a COID Registered Company and Get It Immediately. You can be located anywhere in South Africa as we can assist you online.
Register Below or Contact us Toll Free on 0800 007 269 (free from cellphones and landlines).
Your COID Package Options:
You can choose to (1) Register for COID Only, (2) Register + Get a Letter of Good Standing; or (3) Buy a Shelf Company which has already been registered for COID + a Letter of Good Standing in the Construction Industry.
The 2 Advantages of COID Registration in South Africa.
- Covered: If you are COID registered at the Workmans Compensation Fund, your Company and Employees will be covered in the case of any workplace injuries. This includes all medical expenses (up to 2 years), temporary total disablement (TTD), permanent disablement (PD), funeral costs, pension for the injured Employee or in the case of fatal, pension to the Dependents of the deceased.
- Letter of Good Standing for Tenders: Once you are Registered with COID, you will be able to apply for a Letter of Good standing. As most Tenders and Contracts requires you to have a Letter of Good Standing from the Workmans Compensation Fund, you will have more business growth options.
Here follows links to other Workmans Compensation Fund Services you may be looking for:
COID Registration and Letter of Good Standing – more info:
COID Registration and Letter of Good Standing Process
(1) COID Offices: We visit the Compensation Fund’s offices in Pretoria on your behalf to complete the correct forms, wait in the lines, meet with an official and make sure that your COID Application is successful.
(2) Start using your COID Registration Number: Our COID Department will ensure your COID Registration is successful in the quickest possible timeframe.
(3) Letter of Good Standing: You will then be able to apply for a Letter of Good standing – we can assist with this as well.
If any Employee gets injured on duty; or becomes sick with ‘Occupational Diseases’, the Employer will be protected against civil claims. Most contracts and tenders require that the Company needs COID Registration and a Letter of Good Standing before he / she can apply for any contracts / tenders. For example when you are starting a Construction Company.
Employees who get injured on duty or those who contracted occupational diseases can claim compensation for temporary or permanent disablement. These claims will be awarded according to the degree of disablement or death by the Department of Labour.
They will also be covered for reasonable medical aid expenses arising out of an injury on duty. This compensation is payable for a period of two (2) years or longer if further medical treatment is needed and if it will reduce the extent of disability.
Mission of COID / COIDA
To compensate Employees for disablement caused by occupational injuries / diseases sustained / contracted in the course of their employment. Or to compensate their dependents for death resulting from such injuries / diseases. To pay the reasonable medical expenses incurred.
What is an Assessment?
It is the annual payment which is paid by the Employers to the Compensation Fund to cover Employees who are injured at work.
Who in South Africa must register with the Compensation Fund?
All Employers who employ one or more part-time or full-time Employees must register with the Compensation Fund.
Letter of Good Standing Info
This letter is issued to the Employer who meets the following criteria:
1. COID Assessment fully paid up
2. Installment arrangement honored
The Employer is regarded to be in good standing when:
– registered with the Compensation fund / COID
– submitted annual returns
– paid assessment in full
– report accidents timeously
In this post, I will discuss everything you need to know about Workmans Compensation or COID Registration in South Africa. I will explain what kind of businesses need to register with COID, how COID relates to Tenders in South Africa and also what the fastest route is to get full COID Registration.
This post is for you if you’re an employer with one or more employee. This post is specifically for you if you need to register with COID to obtain your Letter of Good Standing to apply for and win Tenders. However, this post is also for you if you simply have general questions about COID, Workmans Compensation and what it is all about.
We often work with South African employers, entrepreneurs and business who have a range of questions regarding Workmans Compensation, COID, the COIDA legislation and how it all relates to getting a Letter of Good Standing. That’s why we’re answering thirteen of these frequently asked question below.
What is COIDA?
COIDA (or just COID) is an acronym for the Compensation for Occupational Injuries and Diseases Act. This Act is a piece of South African legislation that helps employers take care of their employees.
This Act makes sure there’s some financial compensation or medical expense coverage available for employees in the case of any injuries or diseases sustained at or during work. It also provides compensation in the cause of work-related death. This financial aid is called the Workman’s Compensation Fund.
It’s good to note that the law was amended in 1997 to be more relevant to today’s business environment. In 1997 the law was officially changed from the “Workmen’s Compensation Act (Act No. 30 of 1941)” to the current “Compensation for Occupational Injuries and Diseases Act (Act 130 of 1993)”.
How is COIDA relevant to me?
If you’re a South African employer, this Act most likely (there are a few very limited exceptions) forces you to register for Workman’s Compensation (or COID) in order to financially contribute to the Workman’s Compensation Fund.
This fund is a form of insurance that helps you compensate your employers reasonably in the case of work-related injuries, diseases or death.
If you’re a South African employee, this Act ensures that you are eligible for compensation or medical expense assistance if you ever fall ill or are injured in a work-related accident. It also makes provision for compensation to your dependants in the case of work-related death.
What is the Compensation Fund?
The Compensation Fund is a fund that administrates the financial contributions of South African employers and the claims by South African employees or their dependents regarding work-related deaths, injuries or diseases.
This fund forces employers to make provision to financially compensate their employees (or their dependents) in the case of any work-related incidents that cause death, harm or illness to their employees.
Almost all South African Employers are required by law to contribute to it. In turn, the fund offers financial assistance and/or compensation for occupational injuries, diseases or deaths to employees or their dependents.
The Compensation Fund is administered by the Compensation Commissioner who approves the claims.
When do you have to register for COID in South Africa?
Most South African Employers have to register for COID.
If you employ one or more part- or full-time employees you have to register with the Compensation Fund (COID). You have to register with the Commissioner at the Compensation Fund within the first 7 days of employing your first employee. If you’re unsure, rather start the COID Registration process to find out whether you should than neglecting to do so.
How do I register for COID in South Africa?
That means you’ll be paying annual assessment fees to the Workman’s Compensation Fund.
You have to submit a W.As.2 Form along with certified copies of the IDs of all the owners of your business. If you’re the only business owner, only your ID is required.
If you’ve already registered your company, you have to submit a certified copy of your Company Registration Certificate along with your form too.
We can assist with your COID Registration as well as Company Registration – contact us toll free on 0800 007 269.
What are the COID assessment fees?
Annual assessment fees/tariffs are the yearly fees any employer has to contribute to the Compensation Fund based on the earnings of his or her employees. This annual amount is also influenced by the type of work these employees do.
Certain professions have a higher risk of occupational injury, death or harm, so the annual contributions will be higher for high-risk versus low-risk employees.
Every year the total cost of the employee-salaries will be reviewed – along with the professions to determine a fair contribution the employer needs to submit to the fund to safeguards his or her employees.
What are Return if Earnings (ROE)? Why do I have to submit my ROE to the Workman’s Compensation Fund / COID?
Every year on the 31st of March, employers (this includes contractors) are required to submit a Return of Earnings stating the total wage/salary expenditure between March of the former year and February.
The fund then reviews the Return of Earnings and stipulates the amount payable in a Notice of Assessment.
We can assist with your COID Return of Earnings – contact us toll free on 0800 007 269.
How can I pay COID / Workman’s Compensation / Notice of Assessment?
The amount payable to the Compensation Fund is called assessments. Do you have to pay the full amount or can you divide it into instalments? Here are the rules:
- You have to make your first payment to the Compensation Fund within 30 days after getting the Notice of Assessment (you get this notice after registering with the fund, submitting your Return of Earnings – your total wage expenses).
- You have to pay at least 20% before asking to pay the rest of the payable amount in monthly instalments.
- If you miss a payment, the full amount is due immediately thereafter.
We can assist with your COID assessments – contact us toll free on 0800 007 269.
What happens if I don’t pay Workman’s Compensation? Or if I’m late with my Return of Earnings?
There are a few things that could happen depending on how and why you don’t pay the Compensation Fund as an employer. Here they are (plus they’re correlating legislation):
- Submitting your ROE late: you’ll get a penalty – (Sect 83(2) – 10%)
- Not submitting your ROE at all: you will still get an estimated payment that’s based on an estimate – (Sect 83(6)(a)
- Not paying your assessment: you’ll get a penalty (Sect 87(1) – 10%)
- You’ll also pay interest on your assessment late payments according to the prevailing prime rate
- Reporting incidents late: you’ll get a penalty
- Not being registered at the Compensation Fund: you’ll get a penalty as soon as an employee, or his or her dependents, claims for an accident/death – (Sect 87(2)(a))
- In this case, if you don’t provide a fair provision for your employee, or his or her dependents, in the case of a work-related incident you’ll be guilty an offence – Sect 81(3)
How is Workman’s Compensation relevant to Contractors and Sub-Contractors?
All Contractors and Sub-Contractors have to register with the Compensation Fund (COID). They also have to pay assessment fees as determined by the Fund.
If the main contractor doesn’t comply with COID, a sub-contractor will be fully responsible for any claims from the subcontractor’s employees. That’s why contractors often require a Letter of Good Standing. A Letter of Good Standing is proof that you have no outstanding payments to the Compensation Fund.
What is a Letter of Good Standing?
A Letter of Good Standing is an official letter that proves you’re registered and up-to-date with your payments with the Compensation Fund or COID.
The reason why Tenders and Contracts so often require you to have a COID Letter of Good Standing is simply to make sure you’re taking full responsibility of your employees and to make sure you’re authorized to operate legally.
If you’re not registered or you’re not in good standing with the Compensation Fund, your employees aren’t covered by the Compensation Fund in the case of any work-related accidents in terms of medical expenses or compensation in the case of permanent injury or death.
We can assist with a Letter of Good Standing from COID – contact us toll free on 0800 007 269.
What documents do you need to get a Letter of Good Standing?
Here are the prerequisites, as an employer or business owner, to getting a Letter of Good Standing – and the correlating legislation:
- You have to be registered with the Compensation Fund – section 80 of the COID Act.
- You have to be up-to-date with your Return of Earnings submissions – section 82 0f the COID Act.
- You must be fully assessed by the Compensation Fund in terms of your payable amount – section 83 of the COID Act.
- You have to be up-to-date with your due payments – section 86 of the COID Act.
- If you have an instalment arrangement to pay your assessment fee on a month‐to‐month basis, you can only receive a Letter of Good Standing that’s valid and renewable on a month‐to‐month basis.
We can assist with a Letter of Good Standing from COID – contact us toll free on 0800 007 269.
How does a claim from the Compensation Fund work?
Once an employee, or his or her dependents, has submitted a claim to the Compensation Fund the Commissioner will assess the case and determine fair compensation.
The amount of compensation will largely depend on the employee’s income before the incident, the nature of the injury and also, in the case of death, whether the harmed or deceased person is the breadwinner of his or her family.
If an employee stopped working before the diagnosis of a disease, the Commissioner will use the salary before the employee stopped working as a reference.
We can assist with your Compensation Fund Claim – contact us toll free on 0800 007 269.
What can I claim from the Compensation Fund?
If you were harmed or contracted a disease in a work-related situation, you can claim up to 2 years’ worth of medical expenses from the Workman’s Compensation Fund. You can either date this from the accident or the diagnosis of your disease.
If you can’t work due to a work-related injury or disease, you can claim compensation for the lack of an income for up to 1 year. It can be extended to 2 years or permanent disability (see below) if the Commissioner approves it.
You can also claim your medical costs. When you’re unable to work or can’t do all your work because of an injury or disease.
All medical expenses are also paid if the medical accounts are submitted to the Commissioner.
If you were hurt or fell ill in such a way that permanently impairs your ability to work in the same way you could before, or stops you from ever working again, you can claim compensation for it.
You will receive a monthly pension (the amount will be determined by your income prior to your incident and your disability) if your disability is more than 30%.
If you still have a disability, but it impairs you less than 30% you could be awarded a once-off total sum as compensation.
Death, induced by a work-related incident, means the dependents of that employee can claim for funeral expenses. Dependents include the spouse of the deceased and the children (under the age of 18) of the deceased – this includes adopted children, step-children and illegitimate children.
If the deceased is the main provider for a family, the family can also claim compensation.