Workers comp

Workmen’s Compensation (COIDA)

Workmen’s Compensation (COIDA)

As of 10 March 2021, any individual who works in a household must be registered both with the Unemployment Insurance Fund and the Compensation Fund. Although the Compensation Fund exists to aid Employees, it is the Employer’s responsibility to register and pay for their Employees.

If you don’t register – what happens?
If your Domestic Worker has a workplace accident and it arises that the Employer has failed to register the Employee with the Compensation Fund or has failed/refused to contribute to the Compensation Fund, the Employer will be liable for the injuries and can face fines and other penalties determined by the Director-General. Employers are further open to civil claims if something goes wrong at the place of Employment. Employees can bring a case for the cost of medical aid as well as permanent disablement, compensation for death and even pension payments.  Examples of injuries that are likely to occur include injuries resulting from household equipment like irons, vacuum cleaners or gardening equipment etc.

What will it cost you?
The assessment tariff is determined according to hundreds of industry classifications, classes, and subclasses which are based upon the risks associated with the type of work performed. The COIDA amendments, applicable from 1 March 2021, list domestic workers as Class M, subclass 2500 at an assessment rate of 1.04.

There below is a guide on how to calculate your possible annual costs:

Annual earnings divided by 100 multiply by 1.04 = annual assessment payable
*Please note these assessment tariffs are reviewed on an annual basis and are subject to change, the above is noted as a guide.