29 June 2006
Labour Minister Membathisi Mdladlana has raised the pensions payable to
injured employees or dependants of fatally injured employees by two
percent.
The two percent increase is in respect of accidents which occurred as well
as occupational diseases diagnosed before 1 April 2005 with effect from 1 April
2006.
A pension is a monthly grant paid to employees who have disabilities of more
than 31 percent. The disability has to have been a result of an accident or
injury on duty.
If an employee gets fatally wounded, his dependants receive monthly pensions
for a life time.
In fatality cases, the widow/widower is entitled to the payment of a lump
sum to the equivalent of twice the monthly pension to which the employee would
have been entitled to if he/she were 100 percent disabled as well as a pension
equivalent to 40 percent of the pension to which the employee would have been
entitled if he/she were 100 percent disabled.
As at the end of June 2006 the Compensation Fund paid out almost R32 million
of pensions money to 22 731 individuals on its pensions payroll. More than R30
million of these were electronic transfer payments as the Fund is moving away
from cheque payment in an attempt to combat the high rate of stolen
cheques.
The current minimum earnings on which Permanent Disablement (PD) is based is
R1,632 per month and the maximum is R8,360 per month.
Compensation for PD where the degree of disablement is 30 percent or less
takes the form of a lump sum, based on 15 times the employee�s monthly earnings
up to a maximum determined annually. Where disablement is less than 30 percent
the lump sum is calculated proportionally. The act also provides for a minimum
amount for compensation if the income of the employee is below a certain limit
which is increased annually.
Enquiries:
Mokgadi Pela
Cell: 082 808 2168
Issued by: Department of Labour
29 June 2006
