Introduction to Injuries-on-Duty Annual Assessment Tariff Changes
Why Employers must register for COIDA / Workman's Compensation
Registration for the Compensation for Occupational Injuries and Diseases, more commonly referred to simply as COIDA / WCA, provides employers across all industries with compliance through minimal effort on their part where registration, the submission of earnings, and the obtaining of the Letter of Good Standing (LOGS) is concerned.
All employers must understand the logistical processes involved with such claims, how COIDA operates, how the system works during registrations, and what amended tariffs there are which must be paid by employers annually according to their risk ratios.
COIDA serves the fundamental purpose of protecting workers should they have injured themselves while also ensuring that employers support the compensation that is required by paying certain annual tariffs.
The aim of COIDA is to provide all employees with adequate compensation in the event of disablement, which is caused by occupational injuries and diseases, which are sustained or contracted by employees throughout their employment or should death result from such injuries or diseases. This also helps to provide for any matters which are connected therewith.
Businesses that have more than one branch or that carry on more than one class of business may be required to register with COID for each place or class of business. This is to be determined by the Commissioner.
It is crucial for all employers to apply for COIDA as non-compliance with such is considered a criminal offence and employers may subsequently be liable for prosecution. Download the Free Download - COIDA Act E-Book. Read more in the COIDA Service e-book.
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Basic Guide to Workmans Compensation Fund Assessment Fees
How does an employer determine their assessment tariff for COID?
Employers must annually submit a return of earnings which includes the details of employees’ salaries which are paid to all employees. This includes both temporary and permanent employees and must be submitted before March 31 of every year as per Section 82.1 of COIDA.
The submission of the earnings must contain all information from March 1 of the previous year to the end of February of the current year.
After this has been submitted, the Commissioner is responsible for assessing the WCA Return of Earnings along with the salaries paid to both temporary and permanent employees throughout the year.
In addition, the Commissioner also assesses and considers the risks associated with the type of work conducted by the employer as part of this assessment. Should the risks that the employer faces be high (according to the industry class), the tariff that must be paid will subsequently be higher.
COID assessment tariff changes
It should be noted that at present, SafetyWallet is awaiting confirmation from the Compensation Commissioner regarding certain assessments.
These assessments refer specifically to domestic workers regarding the process to be followed and how payment could be expected.
What is the impact of the new COIDA / Workman's compensation Tariff Assessment Structure?
Changes to the Assessment Structure will mean that there will be subsequent assessment tariff changes.
Due to changes that will take effect from March 2021, there is a restructuring of tariffs that will be introduced. The 2021 assessment year runs from the period of 1 March 2020 to February 28, 2021.
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:
Class A - COIDA Tariffs of Assessments this includes – Finance, Beauty and Hair Salons, Medical Specialist, Consultants, Admin Consultants, Education Services and Organisations. Read more here on Class A
Class B - COIDA Tariffs of Assessments this includes – Fruit Packing, Brewery, Coffee Tea and Tobacco, Broadcasting and Funeral Parlour. Read more here on Class B
Class C - COIDA Tariffs of Assessments this includes – Opencast Mining, Fisheries, Fruit and Veg Processing, Bakery & Snacks Manufacturing, Material Products Manufacturing, Printing and Soft Paper, Chemical & Plastic Manufacturing, Glass Manufacturing, Food Retail, Clothing Retail, Hardware & Textile etc, Builders Scrap & Metal, General Dealer, Transport Agency, Municipal Services, Hospitality Services and Management Career Agent. Read More Here on Class C
Class D - COIDA Tariffs of Assessments this includes – Sugar & Tea Farming, Coal Mining, Drilling and Boring, Water Works, Drinks Manufacturing & Bottling, Pesticides& Explosives, Pharmaceuticals, Rubber By-Products, Leather Works, Cement & Lime Manufacturing, Jewellery & Optometry, Electrical Appliance, Aerial Services, Telecommunications, Laundry, Entertainment, Sports Club and Parks & Nature Reserves. Read More here on Class D
Class E - COIDA Tariffs of Assessments this includes – Chrome/Electroplate, Horse Stabling. Read more here on Class E
Class F - COIDA Tariffs of Assessments this includes – Grease Manufacturing. Read more here on Class F
Class G - COIDA Tariffs of Assessments this includes – Meat Products, Dairy Products, Milling, Food Manufacturing, Distillers & Winery, Textile Manufacturing, Plastic Products Manufacturing, Woodworks, Rubber Manufacturing, Warehousing & Storage and Postal Services. Read more here on Class G
Class H - COIDA Tariffs of Assessments this includes – Mixed Farming, Sawmilling, Soft Wood Manufacturing, Hard Paper Manufacturing, Petroleum, Hides, Skins and Stripping, Brick and Tile Manufacturing. Read more here on Class H
Class I - COIDA Tariffs of Assessments this includes – Rock Drilling and Blasting, Circus. Read more on Class I
Class J - COIDA Tariffs of Assessments this includes – Livestock & Farming, Tillage & Forestry, Building and Electrical Construction, General Services, Civil Construction, Heavy Electric Maintenance, Glass Works, Transport, Goods Transport, Shipping and Security Services. Read more on Class J
Class K - COIDA Tariffs of Assessments this includes – Ocean Fishing, Underground Mining, Quarrying & Crushing, Steel Construction & Erection, Concrete Works, Marble & Granite Manufacturing and Tar Asbestos Bitumen. Read more on Class K
Class L - COIDA Tariffs of Assessments this includes – Cotton Wool Manufacturing, Fireworks, Iron & Steel Manufacturing, Foundry Manufacturing, Minor Steel Products
Engineering, Electric Cable Manufacturing, Motorcar Assembly, Motorcar Garaging
Auto Body Repairs, TRANSNET, Power Stations and Correctional Services, Read more on class L
Class M - COIDA Tariffs of Assessments this includes – Households Read more on new Class M including Domestic Workers
The Compensation Commissioner performs a yearly assessment on all registered businesses spread across all industries and soon Households will be included. These companies are divided into industry classes along with subclasses, of which there are around 100.
Every subclass is allocated a specific tariff which must be paid annually. These tariffs are according to the risk ratio associated with the nature of the sub-class’ business.
The tariffs are set to change annually and will depend on the number of incidents that have been experienced across the entire sub-class.
To make the transition easier into the new tariffs, there is a grouping of sub-classes according to their risk ratio.
Once an employer’s assessment fee has been calculated according to the total of all employees’ salaries divided by 100 (ration percentage) and then multiplied by the assessment tariff, this must be paid within 30 days of the assessment from the Commissioner as per Section 86.1 of COIDA.
What does SafetyWallet do for its clients?
SafetyWallet, not only supports its subscribers but rewards them generously in most components of Health and Safety in both Industry and Commerce.
SafetyWallet provides support services to its client to ensure that they are compliant not only with COIDA but with all relevant legislation as well. As a start, SafetyWallet offers a Health and Safety Training platform where clients have access to E-Learning which covers the broad spectrum of health and safety training.
As far as COID is concerned, SafetyWallet and its appointed partner MAKROSAFE act as the link between the employer and the Department of Labour Inspectors and the Compensation Commissioner. MAKROSAFE can handle the submission of relevant documents, administration of Injury on Duty, or 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 service provider in South Africa. By offering compliance audits, risk assessments, implementation and maintenance of health and safety programmes, and more.
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