Workmen’s Compensation is a government-mandated program that provides financial support and benefits to employees who become injured or ill due to their work. If a worker is injured, contracts a disease, or dies while working, they or their dependents can claim from the Compensation Fund.
Who Can Claim Workmen’s Compensation?
You can claim if you are:
- A permanently employed worker.
- A domestic worker in a boarding house or employed in a business setup.
- An apprentice or trainee farm worker.
- A worker paid by a labour agency.
You cannot claim if you are:
- A domestic worker employed at a private home.
- A member of the South African National Defence Force (SANDF).
- A member of the South African Police Service (SAPS).
- A worker not under the control of an employer.
- A worker employed outside South Africa for over 12 months without an agreement with the Director-General of the Department of Labour.
- An employee found guilty of willful misconduct, unless seriously disabled or killed.
Compensation You Can Expect
- Short-Term Injury (3 days or less): Only medical expenses will be covered.
- Injury Lasting Up to 3 Months: Your employer must pay you 75% of your earnings during the recovery period. The employer can then claim this amount back from the Compensation Fund.
- Injury Exceeding 3 Months: You must claim directly from the Compensation Fund.
Permanent Disability Compensation
If a medical assessment confirms that your injury causes permanent disability, the compensation is based on the percentage of disability as defined by the Act:
- 30% Disability or Less: You will receive a lump sum payment as compensation.
- More Than 30% Disability: You will receive a monthly pension for life, along with arrears payments starting from the date of stabilization of your condition.
- If an employee dies due to an injury or disease, dependents are entitled to receive a pension for life.
Employer Registration for Workmen’s Compensation
An employer should register with the Compensation Fund within 7 days after hiring the first employee. Registration can be completed online via labour.gov.za or by submitting the registration form along with the following documents:
- Entity registration documents.
- UIF proof of registration.
- ID copies of owners, directors, or trustees.
- Proof of business residence.
Employer Assessments
Registered employers must pay annual assessments based on a percentage of the annual earnings of their employees. Late submissions attract a 10% penalty on the final assessment if the Return of Earnings is submitted after the due date.
Reporting Work-Related Injuries and Diseases
When Should an Injury on Duty (IOD) Be Reported?
Employers must report an injury on duty claim within 7 days of receiving notice or an occupational disease within 14 days.
How Long Before a Claim Number Is Generated?
Employers are advised to register claims through the Claim Management System online at labour.gov.za. A claim number is generated immediately once the IOD is reported and all relevant information is uploaded.
Steps to Follow When an Employee Is Injured or Contracts a Disease Due to Work
- When visiting a doctor or hospital, the injured worker should present the Employer’s Report of an Accident Form (W.Ci.2 – Part B) completed by the employer.
- The employer or doctor must submit:
- The First Medical Report (W.Ci.4).
- Progress/Final Medical Reports (W.Ci.5).
- All other necessary documents to assist the Compensation Fund in assessing liability.
