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Get Compliant from Anywhere, Easy and Fast!

0800 007 269 (Toll Free)
Get Compliant from Anywhere, Easy and Fast!

Table of Contents

  • Business Compliance

What is Workman’s Compensation (COID) and why do you need it?

  • Updated on 9 April, 2025
Learn the importance of COIDA and how workmens compensation works in SA

For the sake of unexpected events not costing you or your business, we’re giving you all the important info on Workmens Compensation Fund and why SA Law requires you to protect yourself and your employees.

Imagine this: you’ve employed your first employee. Later, your employee walks up the staircase leading to his office; eyes fixed on his cell phone screen, he trips and ends up with a serious spine injury.

As the injury occurred when your employee was on duty, you’ll probably have to pick up the medical bill, despite it being R100,000.

Expert tip on the workmens compensation fund is to ensure you comply to avoid large payouts

You probably can’t dish out that kind of money, and your employee needs to have the medical attention he deserves, which is exactly why the Department of Labour created COIDA Registration, frequently referred to as Workman’s Compensation.

Workmans compensation fund registration is compulsory in South Africa

How does Workman’s Compensation work?

Workman’s Compensation is a type of insurance, managed by The Compensation for Occupational Injuries and Diseases Act (COIDA). It protects employers from dooming civil claims and enables both casual and full-time employees to claim compensation directly from the Fund for work-related injuries, diseases and disability.

It even enables the dependents of an employee to claim compensation in the case of a work-related death.

You pay a yearly fee (referred to as Annual Assessment Fees), determined as a percentage of the amount your business spends on salaries and the industry classification of your business. In turn, the Fund will help cover all your employees’ medical bills or compensation in the case of death.

However, you need to register for COIDA first. Signing up via the Labour Department can take months. That’s why using a service provider like Company Partners is a great idea. Company Partners will assist you in getting registered in under three (3) weeks.

More reasons to sign up for Workman’s Compensation

  • It’s the law. The Labour Department requires any employer with one or more employees to register for Workman’s Compensation.
  • It can save you from bankruptcy. Large, unexpected medical bills can easily sink a small business, as hospital fees or ongoing medical expenses may amount to thousands per year.
  • It helps with Tender applications. Tender applications usually require a Letter of Good Standing. As the law requires employers to register for Workman’s Compensation, you can only get a Letter of Good Standing if your Workman’s Compensation payments are up to date.
Here is how company partners can help you with COIDA registration

Additional Benefits of Workmen’s Compensation

  • The Compensation Fund may also cover expenses for rehabilitation programs, prosthetics, and ongoing care for employees with lasting injuries.
  • Companies that actively promote workers’ compensation insurance demonstrate their commitment to employee safety, which can improve staff morale and retention.
  • Having workman’s compensation in place can build trust with clients and partners, especially in sectors like construction, manufacturing, and hospitality, where workplace risks are higher.

What do our COIDA specialists from Company Partners advise?

  • Ensure you submit your Return of Earnings forms on time to avoid delays in securing your Letter of Good Standing.
  • Double-check your payroll data to ensure your fee calculation is accurate. Incorrect figures can cause delays and penalties.
  • If you have multiple branches, remember that you may need separate registrations for each branch to remain compliant.
  • Consider seeking expert advice to ensure your annual assessment fees are calculated correctly, reducing the risk of overpayment/underpayment or penalties.
  • If you’re unsure about your business classification, Company Partners can guide you to ensure you’re placed in the correct category, which can impact your assessment fee.

What you need to know about Return of Earnings (ROE)

All employers are required by the COID Act to complete and submit a COID submission every year, which is called a Return of Earnings (ROE) or W.As.8. This is a statement of yearly earnings to the Compensation Fund. The amount that the employer has to pay to the Compensation Fund will depend on this amount and the type of business that it is.

Use our free coida calculator to determine your return of earning fees

Use our Free COID Assessment Fees Calculator to help you calculate your estimated fees.

Important info to keep in mind

  • Outdated payments mean no coverage. It’s your responsibility to reregister your company and pay your annual Workman’s Compensation assessment fee. If you don’t pay, the Fund won’t protect you or cover your employees. We remind our clients when annual payments are due.
  • You might need more than one registration. Different branches within one company usually require different Workman’s Compensation registrations.
  • There are exceptions. The Compensation Fund won’t cover the following employees, according to the Compensation for Occupational Injuries and Diseases Act:
    • Workers totally or partially disabled for less than 3 days;
    • Anyone receiving military training;
    • Members of the South African National Defence Force or the South African Police Service;
    • Any worker guilty of wilful misconduct, unless they are seriously disabled or killed;
    • Anyone employed outside the RSA for 12 or more continuous months;
    • Workers working mainly outside the RSA and only temporarily employed in the RSA.

Avoid Costly Mistakes
Get COID Right the First Time

Managing Workman’s Compensation on your own can lead to costly mistakes. Company Partners ensures your COID registration, Return of Earnings, and Letter of Good Standing are handled accurately and promptly, keeping you compliant and saving you from penalties.
Get a FREE Consultation

How to Register for Workman’s Compensation?

It’s easy to register for Workman’s Compensation if you follow these 5 easy steps:

Gather Required Documents

This includes your company registration documents, employee details, and salary information.

Complete the COID Registration Form

Ensure all information captured on the WAs2 form is accurate to avoid delays.

Submit to the Department of Labour

While direct submission can take months, we can register your business for COID in under three (3) weeks.

Pay Your Annual Assessment Fee

This fee is calculated based on your total payroll and the risk factor associated with your industry classification.

Obtain Your Letter of Good Standing

This document is essential for tenders, contracts, and showing compliance with SA law.

Read our quick guide on COIDA registration in South Africa

For more information, you can refer to our quick guide on COID Registration.

Why Choose Company Partners?

  • Fast Registration: Company Partners specialises in speeding up the COID registration process, ensuring you’re covered in as little as three (3) weeks.
  • Expert Guidance: Their knowledgeable consultants ensure all forms are completed accurately, reducing the risk of errors and delays.
  • Ongoing Support: From reminders about annual fees to securing your Letter of Good Standing (in as little as 48 hours), Company Partners keeps you on track.
  • Trusted by Thousands: With a proven track record of assisting businesses nationwide, Company Partners is a trusted name in COID registration.
  • Tailored Solutions: Whether you’re a small business or a large enterprise, their services are designed to suit your company’s unique needs.

Success Story

A small construction company faced a major delay in securing a tender because their COID registration had errors, resulting in an audit. With Company Partners' expert guidance, the company was registered in record time, obtained their Letter of Good Standing, and successfully secured the tender. This is only one example in the past 3 months we have assisted 152 clients with COID registrations.

Frequently Asked Questions

The Compensation Fund provides financial support for medical expenses, disability benefits, and wage replacement for employees injured on duty or who contract a workplace disease.

Company Partners can assist you in completing your COID registration in record time, ensuring you’re covered without unnecessary delays from anywhere in South Africa.

We can assist to get your COID registration within 7 days online, wherever you are in South Africa. You can also opt for our COID Package, which includes a Letter of Good Standing.

For additional guidance, you can check out the Labour Department’s basic guide to the Act.

Learn More About COID and the Letter of Good Standing

Watch these quick videos to see how COID works and how to get your Letter of Good Standing.

Final Thoughts

Navigating Workman’s Compensation requirements can be daunting, but with the right support, you can ensure your business remains compliant and your employees are protected. Trust Company Partners to handle your COID registration, Letter of Good Standing, and Return of Earnings submissions efficiently. Contact us today and secure your business with confidence.

Register for COID in 3 weeks with Company Partners. Stay compliant and protect your employees today!

Contact us today!

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