The Compensation Fund has posted a surplus of R3.2 billion in the past financial year, a meeting was told in Pretoria today. The Fund raised R5,2 billion assessment revenue as compared to R4,8 billion in the previous financial year, an increase of 8%.
Shadrack Mkhonto, the Fund’s Commissioner, was addressing a board meeting which was also attended by Labour Minister, Mildred Oliphant. Mkhonto said the accumulated financial standing of the Compensation Fund was standing at R26,5 billion.
He said 5% of the money will go towards investment in job creation projects. “This is as a result of the increase in the number of companies that are registered with the Fund. The number of these companies is currently standing at 420 000”, said Mkhonto. But one of the Board members argued that the number of employers could increase drastically if the Department of Labour was to tighten the screws around inspection and enforcement.
Mkhonto also attributed the accumulation to the assessments that determine how much the companies should be invoiced.
“The Compensation Fund is the biggest medical aid in the country covering more than 11 million members most of whom are workers and employers”, Mkhonto said.
Enquiries:
Shadrack Mkhonto
Compensation Fund Commissioner
Cell: 082 568 3151
Source: Department of Labour
Compensation Fund in sparkling financial health
