COIDA is the compliance obligation that catches South African employers most off guard. Unlike UIF or PAYE — which are deducted from payroll and paid monthly — COIDA involves a separate annual registration, an annual Return of Earnings submission, a variable assessment fee that depends on your industry and payroll, and a Letter of Good Standing that expires every year. Miss any one of these steps and your employees are not covered for workplace injuries, and you lose the ability to tender for government work.
On 23 January 2026, President Cyril Ramaphosa fixed commencement dates for most provisions of the COIDA Amendment Act, with selected sections deferred to 1 February 2026 and 1 April 2026. The amendments reshape employer compliance obligations, introduce administrative penalties, expand enforcement powers, and extend prescription periods. If you have not reviewed your COIDA obligations since last year, there are material changes you need to know about.
This guide covers everything South African employers need to understand about COIDA — what it is, who must register, how assessments work, the annual Return of Earnings deadline, the Letter of Good Standing, and what the 2026 amendments mean for your business.
What COIDA is and what it covers
COIDA stands for the Compensation for Occupational Injuries and Diseases Act 130 of 1993. It is South Africa's mandatory workplace injury compensation system. The Compensation Fund compensates your employees for occupational injuries, death, disablement, or diseases caused by occupational injury. It does not matter if the injury was due to negligence — the fund still compensates the employee, and at the same time it protects the employer from being sued, no matter whose fault it was.
This is the fundamental exchange COIDA creates: you pay annual contributions to the Compensation Fund, and in return your employees are covered for workplace injuries and occupational diseases without them being able to sue you personally for damages.
Coverage includes medical expenses arising from a workplace injury, compensation for temporary or permanent disability, rehabilitation costs, and death benefits paid to the dependants of an employee who dies as a result of a work-related injury or disease.
Who must register
The Compensation for Occupational Injuries and Diseases Act requires all companies or individuals who employ one or more employees to register with the Workman's Compensation Fund within 7 working days from the date of employment.
As of 10 March 2021, all South African households who employ domestic workers, gardeners, nannies, caregivers, and drivers are also required to register for COID at the Workers Compensation Fund.
All businesses must submit ROE even if you are the only employee. A working director who is paid a monthly salary from the company qualifies as an employee and must be registered under COIDA and submit ROE.
The types of workers covered include:
- Permanent employees
- Domestic workers in private households
- Apprentices and trainee farmworkers
- Workers paid by a labour agency
The 2026 contractor liability change
There is one important caveat introduced by the 2026 amendments. The Amendment Act introduces specific requirements for contractors and sub-contractors. Sub-contractors are required to register as employers with the Compensation Fund and pay the necessary assessments for their employees involved in executing work. If a sub-contractor fails to register or pay assessments, the employees of the sub-contractor will be deemed employees of the contractor — meaning the contractor becomes responsible for paying the assessments for those employees. If your business uses subcontractors, obtain proof of their COIDA registration before work begins.
How to register
Registration is done through the Compensation Fund using the W.As.2 form — the Registration of an Employer form available from the Department of Employment and Labour at labour.gov.za.
You can register online through the Compensation Fund's online portal at onlineservice.labour.gov.za, or in person at any Department of Labour office. Once registration is processed, you receive a CF registration number — your unique identifier for all future interactions with the Compensation Fund.
You will need:
- Certified ID copy of the director or owner
- Company registration documents from CIPC
- The completed W.As.2 registration form
- Details of your business activity and employee headcount
In terms of section 80(1) of COIDA 130 of 1993, an employer must register with the Workman's Compensation Fund within seven days after the first appointed employee. Once registration is completed, the employer is issued with a Compensation Fund number. Depending on the type of industry in which an employer operates, the employer may apply to Rand Mutual Assurance or Federated Employers Mutual Assurance instead of the main Compensation Fund. Mining and construction companies in particular should check whether their industry is served by one of these alternative assurance bodies.
The Return of Earnings — your annual COIDA obligation
Once registered, you must submit a Return of Earnings to the Compensation Fund every year. In terms of section 82 of COIDA, a registered employer shall furnish the commissioner with a Return of Earnings no later than the 31st day of March in each year.
The ROE submission details the total salary and wage expenditure of a company from March of the previous year to February of the current year. The Fund uses this information to calculate the amount payable by the employer in assessment fees.
The ROE requires two sets of figures:
- Actual earnings: the real total salary and wage bill paid to all employees during the previous assessment year — 1 March to 28 February.
- Provisional earnings: your estimated payroll for the current assessment year — an estimate of what you expect to pay employees in the coming year.
Submit actual earnings for the previous assessment year and provisional earnings for the new assessment year in April. For instance: from 1 April 2025, submit actual earnings from 1 March 2024 to 28 February 2025, and provisional earnings from 1 March 2025 to 28 February 2026.
How assessment fees are calculated in 2025/2026
Your COIDA assessment fee is not a fixed amount. It is calculated based on your industry classification and your total employee payroll.
The assessment rate — expressed as a percentage of your payroll — varies by industry class. Higher-risk industries such as construction, mining, and manufacturing pay higher rates than lower-risk industries such as professional services or retail. The Department of Employment and Labour publishes the full tariff schedule annually.
Once the ROE is submitted, employers receive an assessment letter identifying the amount payable to the Compensation Fund. This payment is due 30 days after the date of the notice. You can pay in full or arrange instalments — the payment arrangement process requires paying at least 20% of the amount due upfront, with the remainder paid in instalments completed at least 14 days before the expiry of your Letter of Good Standing.
The Letter of Good Standing — and why it matters
Once you have submitted your ROE and paid your assessment fee, you can apply for a Letter of Good Standing from the Compensation Fund. The employer is regarded to be in good standing when they are registered with the Compensation Fund, have submitted their annual Return of Earnings, and have paid their assessment fee in full or made payments in accordance with an instalment agreement.
The Letter of Good Standing is a document issued by the Compensation Commissioner confirming that you meet the requirements of the Compensation Act. It allows you to claim from the Compensation Fund and is mandatory for most tenders, government contracts, and general contractor work.
Your COIDA Return of Earnings and Letter of Good Standing expire in April every year. A business is required to submit their Return of Earnings and pay the applicable fees annually — without this, the COIDA registration and by extension the protection offered will expire.
Renew your COIDA Letter of Good Standing before 30 April annually, regardless of the date you applied for your first letter.
Important for tender applicants: Each company or organisation that requests the Letter of Good Standing has their own requirements as to how old the documents must be — banks might request that your Letter of Good Standing must not be older than 30 days. Check what the specific requirement is for each tender or contract before submitting.
What changed in 2026 — the COIDA amendments
The amendments reshape employer compliance obligations significantly. Key changes include:
- Administrative penalties replacing criminal prosecution for non-compliance, with fines up to 10% of annual assessments
- Fatalities must be reported within 7 days
- Prescription period extends from 12 months to three years from the accident date, significantly increasing employers' exposure to latent claims and requiring enhanced document retention
The new definition of earnings aligns with the Fourth Schedule to the Income Tax Act, stating earnings as remuneration under the Income Tax Act, excluding pensions, allowances, or retiring allowances. This broader definition may affect how you calculate your ROE for the current period — check with your payroll provider or accountant to ensure your figures use the updated definition.
The new inspectorate framework grants broad powers to enter workplaces, compel disclosure under oath, and issue compliance orders enforceable through the Labour Court.
The record-keeping requirement is also now explicit: employers must retain records for five years and produce them on demand.
Penalties for non-compliance
The penalty structure is now codified clearly in the amended Act.
- Late submission of ROE incurs a 10% penalty under Section 83(2)
- Failure to submit ROE results in an estimated payment based on an estimate under Section 83(6)(a)
- Non-payment of assessment leads to a 10% penalty under Section 87(1) and interest on late payments at the prevailing prime rate
The penalty fee is approximately 10% of the total value of the Notice of Assessment, while interest accumulates from the first month at 15% of the outstanding balance.
Beyond financial penalties: not registering with the Compensation Fund can lead to penalties in the event of an employee's claim due to an accident or death under Section 87(2)(a) and is considered an offence under Section 81(3). An employer who has not registered and whose employee is injured at work has no Compensation Fund cover — the employer is exposed to personal claims and litigation.
The Labour Inspector may issue a Non-Conformance or Contravention Notice during a labour audit, which may lead to additional fines and even imprisonment for the most serious contraventions.
Frequently asked questions
Does COIDA apply to my domestic worker?
Yes. As of 10 March 2021, all South African households who employ domestic workers, gardeners, nannies, caregivers, and drivers are required to register for COID. The minimum domestic employer assessment fee in 2025/2026 is R560.
What is the difference between COIDA and UIF?
UIF covers employees who lose income due to unemployment, illness, or maternity leave — it is funded by monthly payroll contributions. COIDA covers employees injured or who contract a disease at work — it is funded by an annual assessment paid by the employer only. Both are mandatory but they are separate obligations administered by different bodies. UIF goes through SARS; COIDA goes through the Compensation Fund.
Can employees claim COIDA benefits even if it was their own fault?
Yes. The Compensation Fund compensates employees for occupational injuries regardless of fault. It does not matter if the injury was due to negligence — the fund still compensates the employee.
What must I do when an employee is injured at work?
Report the injury to the Compensation Fund immediately. Fatalities must be reported within 7 days under the 2026 amendments. Failure to report timeously attracts penalties. Complete the relevant claim forms (W.CI.2 for injury, W.CI.3 for doctor's report) and submit them to the Compensation Fund. Keep records of all incidents for five years.
What if I use subcontractors — am I responsible for their COIDA compliance?
If a sub-contractor fails to register or pay assessments, their employees will be deemed employees of the contractor, making the contractor responsible for paying assessments for those employees. Always obtain proof of COIDA registration and a current Letter of Good Standing from any subcontractor before they start work on your behalf.
My Letter of Good Standing expired — can I still tender?
No. Most tender requirements specify a valid, current Letter of Good Standing. An expired letter will disqualify your bid. Renew your ROE submission and pay your assessment fee to obtain a new letter. The Compensation Fund issues the letter once a year or monthly depending on arrangements — renew before 30 April annually.