Class H - COIDA / WCA Tariffs of Assessment
COIDA/ WCA ensures that all employees who are disabled by occupational injuries or diseases, sustained or contracted by employees during their employment, are compensated adequately.
COIDA / WCA also provides compensation should injuries or diseases result in death in addition to providing for any and all matters connected herewith. The introduction blog mentioned the other industry Classes and Categories with adjustments.
COIDA / WCA Annual Assessment
Yearly assessments are performed by the Compensation Commissioner on registered employers across all industries in South Africa. These employers are divided into industry classes and subsequently into 100 sub-classes.
Each sub-class has an allocated tariff which must be paid yearly. The tariff is calculated according to the risk ratio associated with the employer’s nature of business.
The employer’s assessment fee is calculated by adding all employee salaries together and dividing the total by 100. This total is then multiplied with the assessment tariff and the employer is liable to pay this amount within 30 days of the assessment, as per Section 86.1 of COIDA.
The tariff structure is set to change from 2021 onwards. The next page contains the tariffs for 2020 and the next five years, specifically for Class H. This side-by-side comparison offers the employer a clear indication of how tariffs change on a year-to-year basis.
However, these tariffs are subjected to changes depending on any changes to the risk ratio.
It is important that employers take note that this year’s assessment will be calculated as follows – the final assessment for salaries and wages for 2020 will be based on last year’s tariff rates and the provisional calculations for salaries and wages for 2021 will be calculated on the new gazetted tariff rates.
The tariffs which are introduced will replace the W.AS. 178T notice and are as follow:
Table 1: Class H current and prospective tariffs
Alt Class Compensation Fund
5-Year Phase In:
Soft Wood Manufacturing
Hard Paper Manufacturing
Hides, Skins and Stripping
Brick and Tile Manufacturing
0116 – Mixed Farming – Class I
This includes farming operations where the farmer is involved in livestock farming and tillage on a more or less equal scale. In addition, the farmer must have one or more tractors and/or power-driven saws.
0801 – Sawmilling – Class VII
This includes saw milling as a separate business and includes woodworking operations.
0811 – Soft Wood Manufacturing – Class VII
This includes the following businesses:
- The manufacturing of baskets, blinds, brush and broom, matches, and picture frames.
- The manufacturing of sports goods, umbrellas and sunshades, straw envelopes, and pipes.
- The manufacturing of both corks including crown corks.
- The manufacturing of equipment for indoor games which are not elsewhere stated, and
- Woodwork manufacturing as a separate business.
0910 – Hard Paper Manufacturing – Class IX
This includes the manufacturing of cardboard and/or strawboard where wood pulping is not involved.
1041 – Petroleum – Class X
This includes the following businesses:
- The import and distribution of mineral oil and petrol which is not stated elsewhere.
- The refining and/or blending of mineral oil petrol along with the distribution, mining, and treatment of torbanite shale.
1100 – Hides, Skins, and Stripping – Class XI
This includes the tanning and/or curing of hides and skins as a separate business along with fell stripping.
1220 – Brick and Tile Manufacturing – Class VII
This includes the manufacturing of granite and/or marble products including monumental works and sculpture as a separate business.
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Where COID / WCA is concerned, SafetyWallet acts as the link between employers and the Department of Labour. SafetyWallet via its appointed partner Makrosafe takes care of document submission, administration of Injury on Duty, or IODs, and the submission of claims along with the return of earnings.
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