The Compensation for Occupational Injuries and Diseases Act (COIDA)requires employers to register with the Compensation Fund and pay assessments to cover workplace injuries. Funders require a Letter of Good Standingas proof of compliance. This guide covers registration, assessments, and obtaining your Letter of Good Standing.
What is COIDA?
COIDA (Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993) establishes a no-fault compensation system for workers who are injured or contract diseases in the course of their employment.
- Employers pay annual assessments to the Compensation Fund
- Employees cannot sue employers for workplace injuries (compensation replaces litigation)
- The Letter of Good Standing confirms registration and payment status
Why Funders Require It
Funders require COIDA compliance because:
- Legal compliance: Non-registration is a criminal offence
- Risk management: Uninsured workplace injuries could bankrupt a business
- Government contracts: Required for all public sector work
- Responsible employer: Shows you protect your workers
Who Must Register
You must register for COIDA if you employ any of the following:
- Full-time employees
- Part-time employees
- Casual workers
- Seasonal workers
- Apprentices and trainees
Exemptions from COIDA
The following are NOT covered by the Compensation Fund:
- Workers earning above the earnings threshold (R563,520/year for 2024/25)
- Domestic workers in private households (separate scheme)
- Members of the SA National Defence Force
- Members of the SA Police Service
- Independent contractors (not employees)
How to Register for COIDA
Online Registration (Preferred)
- Access the Compensation Fund Portal
Go to www.labour.gov.za and navigate to the Compensation Fund online services, or visit uFiling (ufiling.labour.gov.za).
- Create an Account
Register using your company registration number and email address. You'll receive a verification email.
- Complete Form W.As.2
Fill in the Application for Registration of an Employer form online. Required information includes:
- Company registration number (CIPC)
- Trading name and physical address
- Nature of business (industry code)
- Number of employees
- Annual earnings estimate
- Bank details for refunds
- Submit Supporting Documents
Upload copies of:
- CIPC registration certificate
- ID documents of directors/members
- Proof of banking details
- Receive Registration Number
You'll receive a Compensation Fund registration number(starting with your province code, e.g., "GP-" for Gauteng).
Manual Registration
If online registration is not possible:
- Download Form W.As.2 from the Department of Labour website
- Complete the form in black ink
- Attach certified copies of supporting documents
- Submit to your nearest Labour Centre or provincial office
Processing time for manual registration is typically 4-6 weekscompared to 1-2 weeks online.
Assessment Calculation
COIDA assessments are calculated based on:
Assessment Formula
Assessment = Total Earnings × Tariff Rate ÷ 100
Example
- Total annual earnings: R500,000
- Industry tariff rate: 0.89% (typical for professional services)
- Assessment = R500,000 × 0.89 ÷ 100 = R4,450
Tariff rates vary by industry based on risk:
| Industry | Typical Tariff Rate |
|---|---|
| Professional Services, IT | 0.15% - 0.50% |
| Retail, Hospitality | 0.50% - 1.00% |
| Manufacturing | 1.00% - 3.00% |
| Construction | 3.00% - 8.00% |
| Mining | 5.00% - 12.00% |
Obtaining Your Letter of Good Standing
- Ensure Compliance
All annual returns must be submitted and assessments paid up to date.
- Request Online via uFiling
Log in to ufiling.labour.gov.za, select "Request Letter of Good Standing" from the menu. If compliant, download immediately.
- Alternative: Request via Email
Email your request to logs@labour.gov.za with:
- Compensation Fund registration number
- Company name and registration number
- Contact details
- Receive Your Letter
The Letter of Good Standing is valid for one year from issue date. Most funders require a letter issued within the last 3 months.
Maintaining COIDA Compliance
Annual Return of Earnings (ROE)
Every registered employer must submit an Annual Return of Earnings by 31 March each year, declaring:
- Total earnings paid to employees in the previous year
- Number of employees
- Nature of work performed
Paying Assessments
Assessments are due 30 days after receiving your assessment notice. Payment methods:
- EFT to Compensation Fund (reference: your registration number)
- Online payment via uFiling
- At any Labour Centre (cash or card)
Common Issues and Solutions
| Issue | Solution |
|---|---|
| Can't find registration number | Email enquiries@labour.gov.za with company details |
| Outstanding assessments blocking LOGS | Pay outstanding amounts, request updated statement |
| Incorrect assessment amount | Submit objection letter with supporting documents |
| ROE not submitted | Submit late return (may incur penalties) |
| Company name changed | Submit name change application with CIPC amendment |
| uFiling system errors | Try different browser, or visit Labour Centre in person |
Costs and Timeline
| Item | Cost | Timeline |
|---|---|---|
| Registration | Free | 1-2 weeks (online), 4-6 weeks (manual) |
| Annual Assessment | 0.15% - 12% of payroll (industry-dependent) | Due within 30 days of notice |
| Letter of Good Standing | Free | Instant (online) to 10 days (email) |
| Late Payment Interest | 10% per annum | Calculated monthly |
Tips for Success
- Register early: Don't wait until you need the LOGS
- Set calendar reminders: ROE due 31 March, assessment due 30 days after notice
- Keep records: Maintain proof of all payments and submissions
- Use uFiling: Online is faster and you can download LOGS instantly
- Include COIDA in payroll: Budget for assessments monthly
Next Steps
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