Class I - COIDA / WCA Tariffs of Assessment

The Compensation for Occupational Injuries and Diseases Act, more commonly known as COIDA / WCA, is tasked with ensuring that all employees receive the necessary compensation in the event of disablement due to injuries or diseases, sustained or contracted over the employee’s duration of employment.

COIDA /WCA also provides compensation should any injuries or diseases that lead to death in addition to providing for any and all matters associated herewith. (Class I Blog flows out of the Introductory Blog)

COIDA Annual Assessment

It is a legal requirement for all employers to be registered with COIDA / WCA. Non-compliance with this is seen as a criminal offence and employers may face severe consequences.

Every year, the Compensation Commissioner performs an assessment on all employers, spread across all industries. Employers are divided into industry classes and 100 sub-classes.

Each class has its own tariff, which is payable annually, calculated according to the risk ratio associated with the nature of business of the employer.

The assessment fee that the employer must pay is calculated according to the total of employee salaries, divided by 100 and multiplied by the assessment tariff. This fee is payable within 30 days of the assessment according to Section 86.1 of COIDA.

From 2021 onwards, tariffs are set to change, and it is for this reason that Class I tariffs have been broken down in the table below, to provide employers with the tariffs that they can expect during the next five years.

The new rate is provided first and compared, side-by-side, with the 2020 rate, followed by the rate changes for years to come according to the current risk ratio. These fees may, however, change depending on any changes in 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 I current and prospective tariffs

Sub-Class

Industry Name

Alt Class Compensation Fund

New Rate

2020 Rate

5-Year Phase In:

2021

2022

2023

2024

2025

0502

Rock Drilling and Blasting

Class V

3,34

6,73

5,85

5,09

4,42

3,84

3,34

2011

Circus

Class XX

3,34

4,43

4,19

3,96

3,74

3,53

3,34

WCA Tarrif Changes sub class 0502 Rock Drilling and Blasting

0502 – Rock Drilling and Blasting – Class V

This includes:

  • Tunnelling, rock drilling and/or blasting associated with any structure or waterworks which has not been stated elsewhere, or in connection with sanitary engineering and/or sewerage construction.
  • Well sinking

It is important to note that only direct wages expended on any of the above-mentioned operations should be segregated. This is unless the employer is involved in tunnelling, rock drilling and/or blasting as a business.

In such cases, all wages incidental to general wages are subjected to this rate.

2011 – Circus – Class XX

This includes the business of amusement park, or circus owners, as well as pleasure-ground owner, and stock-car racing.

What does SafetyWallet do for its subscribers?

SafetyWallet supports employers across a variety of industries in all components relating to Health and Safety in Industry and Commerce.

SafetyWallet offers subscribers access to a Health and Safety training platform which provides access to a variety of e-Learning short courses. These courses cover the broad spectrum of the Health and Safety arena.

SafetyWallet has more than 1,000 subscribers spread across all industries. subscribers are provided with a variety of services along with assistance in ensuring that subscribers are fully compliant with COIDA / WCA, amidst numerous other regulations.

SafetyWallet is the link between employers, and subsequent subscriber, and the Department of Labour. Via its appointed partner MAKROSAFE SafetyWallet handles document submissions, administration of IODs, the submission of claims, and the return of earnings.

SafetyWallet offers a total solution to Health and Safety Compliance in addition to being the leading Health and Safety support service provider in South Africa, by offering compliance audits, health and safety e-Learning and much more.

 


Posted date: 19th Jan 2021
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