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14 March 2006
The Department of Labourâs Compensation Fund has launched a campaign to urge
all employers in the country to submit their Return of Earnings (W.AS 8) forms
before the deadline of 31 March.
The revenue of the Compensation Fund, which compensates workers who are
injured at work or who contract occupational diseases at work or who die
because of these, comes directly from the assessments of registered employers
in the country. The annual assessments paid by these employers are based on a
percentage or fixed rate of the annual earnings of their employees.
All persons who employ one or more persons in their business or farming
activities are required to register and pay annual assessments to the
Compensation Fund. These amounts may not be recovered from employees.
For the purpose of assessment, earnings mean any payments made to an
employee which arise out of his/her employment and include: Salaries/Wages,
Commission, Cost of Living allowance, the value of food and quarters supplied
free of charge, Incentive bonuses, bonuses of a regular nature to which a
worker is, in terms of his/her service entitled to (i.e. thirteenth
cheque).
Overtime of a regular nature
The assessment rate, at which an employer is assessed, depends on the nature
of an employerâs business operations. For rating purposes employers are
therefore divided into different classes and subclasses according to the nature
of their activities.
The assessment rates are fixed on the principle that each industry should
carry the costs of its own accidents and are reviewed annually. Any adjustment
is therefore in accordance with the accident experience.
There are huge benefits to both the employer and employee for the employer
to be registered with the Compensation Fund. The Act makes provision for the
payment of compensation to employees sustaining an injury on duty. The employer
is protected against all civil claims which may be instituted against him in
the event of an injury on duty, even in the event of alleged negligence.
An employee who is injured on duty is entitled to the payment of
compensation in respect of temporary total disablement, permanent disablement
(according to the degree of disablement) and death. Reasonable medical aid
expenses arising out of an injury on duty are payable for a period of two
years, or longer if further medical treatment will reduce the extent of the
disablement.
Because of the anticipated public interest, especially the employers, a
special telephone line has been dedicated to the Return of Earnings campaign.
For more information please call (012) 321 8020 from 7:30 to 16:00
weekdays.
Enquiries: Mokgadi Pela
Cell: 0828082168
Website: http://www.labour.gov.za
Issued by: Department of Labour
14 March 2006
