COIDA ANNUAL RETURN OF EARNING (ROE) SUBMISSIONS

COIDA ANNUAL RETURN OF EARNING (ROE) SUBMISSIONS

The Compensation for Occupational Injuries and Diseases Act, 1993 (Act No 130 of 1993) (COIDA) is applicable to all employers operating in South Africa, including government entities, local authorities, and municipalities.

In terms of section 82 of the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No 130 of 1993) (COIDA), a registered employer shall furnish the commissioner with a Return of Earnings, no later than the thirty-first day of March in each year.

As a registered employer, you are required to contribute a certain percentage of employee’s earnings to the Compensation Fund.

An earning statement detailing the total employees’ earnings must be submitted to the Fund. These earning statements must stipulate the nature of your business, the number of employees employed and their total earnings (salaries and wages) for the assessment period, from the beginning of March to the end of February (tax year).

Each industry is given a percentage that must be calculated on employee taxable earnings.

Earnings to be included in the COIDA Return are:

  • Gross salary
  • Overtime paid regularly
  • Bonuses of a regular nature e.g. (Annual Bonus)
  • Commission paid regularly
  • The cash value of food and quarters provided to employees as part of their remuneration package.
  • Cash value of fringe benefits – company car, accommodation, reduced rates, etc.
  • Earnings / Drawings paid to working Directors of a Company or Members of a Close Corporation

When completing the COIDA return the following information must be captured:

  • Actual employee earnings per month and head count (Directors & Members in separate column).
  • Projected earnings and head count for the coming year.

The total amount of salaries and wages paid / submitted as Earnings, combined with the category in which the business is registered, will determine the amount payable by the employer to the Compensation Fund.

Once the Return of Earnings has been submitted, the employer will be issued with a Notice of Assessment / Invoice (W.As.6) which indicates the amount owing to the Compensation Commissioner based on the salary information contained in the Return of Earnings.

Payment to the Compensation Fund must be made within 30 days from the date the Return of Earnings has been submitted.

In terms of Section 83(6) of the COID Act, if an employer fails to furnish the Compensation Commissioner within the prescribed period with a Return in terms of Section 82 in respect of a particular period, the Director-General may:

  • Assess the employer on the basis of the earnings estimated in accordance with section 82(5);
  • Impose upon and recover from the employer a fine not exceeding 10 percent of the amount so assessed.

COIDA Amendments (Compensation Fund)

Amendments to the Compensation for Occupational Injuries and Diseases Act (COIDA) are being phased in, with significant changes taking effect in early 2026.  See attached with highlighted sections to take note of: Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993. Updated to Government Gazette 53990 dated 23 January, 2026

  • Contractors and Sub-Contractors: The Amendment Act, 2022 introduces specific requirements for contractors and sub-contractors under Section 89, which outlines their obligations regarding registration and payment of assessments to the Compensation Fund.  Please take note of these requirements:
    • Registration and Payment of Assessments:
      • Sub-contractors are required to register as employers with the Compensation Fund and pay the necessary assessments for their employees who are involved in executing work under the agreement with the contractor.
      • If a sub-contractor fails to register or pay assessments, the employees of the sub-contractor will be deemed employees of the contractor. In such cases, the contractor becomes responsible for paying the assessments for those employees.
  • Staggered Dates:  Most provisions become effective by 23 January 2026, with further changes on 1 February and 1 April 2026.
  • New Definition of Earnings:  A new, broader 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.
  • Administrative Penalties:  Criminal prosecution for non-compliance is replaced by administrative penalties, including fines up to 10% of annual assessments.
  • Reporting Timeframes:  Fatalities must be reported within 7 days, and increased penalties apply for late payments of assessment or temporary disablement compensation.

FHBC offers a variety of services and are assisting our clients with their Annual Return of Earning submissions.

Our Cloudteam recommends solutions like SimplePay or PaySpace for your specific payroll needs. These platforms efficiently handle all compliance calculations, ensuring seamless regulatory submissions while saving you time and money. If you’re considering migrating to one of these solutions, please contact xero@fhbc.co.za for assistance.

Should you require assistance with the submission of your Annual Return of Earnings, please feel free to contact us (Greer Jacobs – greer@fhbc.co.za)