Every employer in South Africa with at least one employee must register with the Compensation Fund, declare earnings each year and keep a Letter of Good Standing. Here is what the Act asks for, and what changed in 2026.
COIDA is the Compensation for Occupational Injuries and Diseases Act 130 of 1993. It sets up a national no-fault insurance scheme, the Compensation Fund, run by the Department of Employment and Labour. An employee hurt at work, or who contracts an occupational disease, claims from the Fund rather than suing the employer. In exchange the employer pays an annual assessment. That trade is the point of the Act: the worker gets a claim that does not depend on proving blame, and the employer gets protection from most workplace injury litigation.
If you employ one or more people, you must register with the Compensation Fund. Section 80(1) requires registration within seven days of employing your first employee, using form W.As.2 through the Department of Employment and Labour. A working director who draws a salary counts as an employee.
Private households are included. Since 2021 a household that employs a domestic worker, gardener, driver or caregiver must register in the same way.
Two sectors fall outside the Compensation Fund and pay into licensed mutual associations instead: much of mining, through Rand Mutual Assurance, and parts of metals and engineering, through Federated Employers Mutual Assurance. Mining and construction employers should confirm which body covers them before registering, because paying the wrong one still leaves you non-compliant.
The Compensation Fund opens the Return of Earnings season and publishes its closing date each year, and Letters of Good Standing lapse annually. In 2026 the letters expired on 30 April and the filing deadline was 30 June. Check the current dates with the Department of Employment and Labour before you file, because they move.
A Letter of Good Standing is the Compensation Fund confirming that your COIDA account is in order on the day it was issued. It is the document a client, main contractor or tender board asks for, and on most construction sites you will not get through the gate without one.
It is not permanent. It carries an expiry date, it lapses annually, and some banks and tender processes will not accept one older than thirty days. The document itself is covered in more detail on the letter of good standing page.
The Compensation for Occupational Injuries and Diseases Amendment Act 10 of 2022 was brought into force in stages during 2026, under Proclamation Notice 306 of 2026, with provisions commencing on 23 January, 1 February and 1 April 2026. The changes that matter most to an employer:
If you have a rehabilitation or return-to-work policy, this is the year to check it against Chapter VIIA. If you do not have one, that is the gap to close.
| Failure | Consequence | Section |
|---|---|---|
| Return of Earnings filed late | A penalty of 10% of the assessment | s83(2) |
| No Return of Earnings filed | The Fund raises an estimated assessment of its own | s83(6)(a) |
| Assessment not paid | A penalty plus interest on the outstanding amount | s87(1) |
| Not registered, and an employee is injured | The employer can be held liable for the cost of the claim | s87(2)(a) |
| Not registered at all | An offence under the Act | s81(3) |
The practical cost usually arrives before the legal one. Without a current Letter of Good Standing you are off the tender list and off the site, and that tends to hurt sooner than a penalty does.
COIDA pays out after someone is hurt. The Occupational Health and Safety Act 85 of 1993 is the one meant to stop it happening, and the two work together: the OHS Act requires an employer to give employees the information, instruction and training they need to work safely, and COIDA carries the bill when that fails.
A good assessment history is therefore not only a safety outcome, it is a cost. Fewer claims mean a better record with the Fund. The appointments and certificates below are the ones an inspector or a client audit asks to see first.
| What a site is asked for | Where it comes from | Training |
|---|---|---|
| Certified first aiders on site | General Safety Regulations, regulation 3 | First aid courses |
| People trained to use the fire equipment | Environmental Regulations for Workplaces; OHS Act sections 8 and 13 | Fire fighting courses |
| An elected safety representative | OHS Act, section 17 | SHE Rep |
| Fall protection for work at height | Construction Regulations 2014 | Working at Heights |
| Certified machine operators | Driven Machinery Regulations | Earth moving machinery |
The health and safety file is where most of this paperwork ends up on a construction site, and the Construction Regulations page sets out what else goes into it.
Fundza Training Institute trains groups on site anywhere in South Africa, or at our centre in Mokopane, and every certificate can be checked online by the employer who paid for it.
If you employ at least one person in South Africa, yes. That includes a private household employing a domestic worker, gardener, driver or caregiver, and it includes a working director who draws a salary. The main exceptions are employers covered by a licensed mutual association instead of the Compensation Fund, which affects much of mining and parts of metals and engineering.
Section 80(1) of the Act gives you seven days from the day your first employee starts. Registration is done on form W.As.2 through the Department of Employment and Labour. You are issued a Compensation Fund employer number, which you will need for every Return of Earnings and every Letter of Good Standing after that.
It is your declared annual payroll multiplied by the tariff set for your industry, with each worker’s earnings counted only up to an annual ceiling. Higher-risk industries pay more, so construction and mining tariffs sit above office-based ones. The Fund issues an assessment notice, and payment is due on the terms set out in it.
It carries an expiry date and lapses annually. In 2026 all letters expired on 30 April. Some banks and tender processes also refuse a letter older than thirty days, regardless of its expiry date, so check what the client actually asks for rather than assuming the letter you hold will do.
Since the 2022 Amendment Act came into force in 2026, an employee injured while doing work-related training for the business falls within COIDA. That is a change from the previous position, and it is worth knowing before you send a crew on a course.
COIDA is built on a trade-off: the employee claims from the Compensation Fund without having to prove the employer was at fault, and in return gives up most of the right to sue the employer directly. That protection depends on being registered. An employer who never registered can find itself facing the cost of the claim instead.
Register with the Compensation Fund on form W.As.2, then file a Return of Earnings for the periods you have been operating. Expect to settle assessments and any penalties for the years missed. If the business is in construction or mining, confirm first whether the Compensation Fund or a licensed mutual association covers you, because registering with the wrong one leaves you non-compliant.
