Frequently Asked Questions » Compensation Fund

An Employer.
Employer means any person, including the State, who employs an employee, and includes- any person controlling the business of an employer; a labour broker who against payment provides a person to a client for the rendering of a service or the performance of work, and for which service or work such person is paid by the labour broker.

Any person who has entered into a contract of service with an employer. This includes temporary staff, members of a Closed Corporation or Directors of a Company. The contract is express or implied, oral or in writing, and whether the remuneration is calculated by time or by work done, or is in cash or in kind, and includes- a casual employee, an apprentice or person on a learnership employed for the purpose of the employer's business; a director or member of a body corporate who has entered into a contract of service or of apprenticeship or learnership with the body corporate, in so far as he acts within the scope of his employment in terms of such contract.

A person provided by a labour broker against payment to a client for the rendering of a service or the performance of work , and for which service or work such person is paid by the labour broker.

Sole proprietors or partners are not employees.

At the end of January each year, forms are sent to all the registered employers. These forms must be completed and returned to CF not later than 31 March.

For the purpose of CF’s assessment, earnings mean before deductions any payments made to an employee which arise out of his employment and include:
• Overtime of a regular nature, (not intermittent or irregular overtime).
• Bonuses of any kind, including incentive bonuses and annual bonuses.
• Commission, even though the amount may vary from month to month.
• The cash value of food and quarters supplied to employees as part of a remuneration package. Cash value of fringe benefits such as a company car, free accommodation or accommodation at a reduced rate, etc.
• Travel and other allowances paid regularly, as part of the package.
• Where the employee is remunerated in accordance with a package of benefits, all items forming part of the package, other than employer contributions such as medical aid contributions.
• Earnings/Drawings paid to working Directors of a Company or Members of a Close Corporation. (To be declared separately) only if it is a fixed Salary.

Employers are required to submit their Return of Earnings on the 1st of March until the 31st of March.

This Fund is protected by provisions which permit the imposition of penalties on employers who fail to pay assessments, or render returns, at a rate of 10% of the assessment.

The employer can benefit as follows:
• The act makes provision for compensation to the employees for occupational injuries and diseases.
• The employer is protected against all civil claims which may be instituted against him in the event of an injury on duty, even in the event of alleged negligence.

The employee can benefit as follows:
• The employee who is injured on duty is entitled to the payment of compensation in respect of temporary total disablement, permanent disability (according to the degree of disablement) and death.
• Reasonable medical aid expenses arising out of an injury on duty are payable for a period of two years, or longer if further medical treatment may reduce the extent of the disablement.

Employer can cancel the registration with CF for the following reasons:
a) Ceased to carry on business or that there are no employees employed by the business.
b) Failed to submit ROEs for the past four (4) consecutive years of Assessment excluding the current year of Assessment.

The employer can only obtain the letter if they comply with the requirements of the Compensation Fund Act, including:
• Employer must be registered with the compensation fund.
• Submitting the latest return of earnings.
• Assessment has been paid or instalments have been arranged.
• The letter can be obtained online at or .

Tampering with the contents of these letters is a serious offence.

If they work outside of the republic now and then (i.e. a few weeks or months at a time) they are automatically covered under the Compensation Fund, however, if they are going to work outside of the republic for more than twelve uninterrupted months, they have to obtain permission from the Compensation Fund, Assessment Section, in order to be covered for the time they will be in another country.

Only if they have a legal working permit.

• Log on to the Department of Labour Website i.e. and select Compensation For Occupational Injuries and Diseases Act (COIDA).
• Visit any Department of Labour office.
• Or if you are in Pretoria, they can visit the office of the compensation commissioner at 167 Thabo Sehume street Compensation Fund Pretoria.
• Contact Customer Care at 086 010 5350.