THE COMPENSATION FUND
THE COMPENSATION FUND AND ITS BENEFITS
Who must register:
All persons who employ one or more persons in connection with their business or farming activities, are required to register and to pay annual assessments to the Compensation Fund. These amounts may not be recovered from employees. A separate registration is necessary for each separate branch of a business unless an arrangement for combined registration has been made.
The Revenue of the Compensation Fund:
The revenue of the Compensation Fund consists mainly of annual
assessments paid by the registered employers on a basis of a percentage
or fixed rate of the annual earnings of their employees.
At the end of January each year, statement of earnings forms are sent to
all the registered employers. These forms must be completed and
The financial year of the Compensation Fund runs from 1 March to the end
of February of the next year.
The Compensation Fund is also protected by provisions which permit the imposition of penalties on employers who fail to pay assessments, or render wage returns, at a rate of 10% of the assessment.
What is regarded as Wages/Earnings:
For the purpose of assessment, earnings mean any payments made to an employee which arise out of his employment and include :
Rates and Methods of rating:
The assessment rate, at which an employer is assessed, depends on the
nature of an employer's business operations. For rating purposes
The assessment rates are fixed on the principle that each industry
should carry the costs of its own accidents and are reviewed annually.
Benefits for the employer:
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
An employee who is injured on duty is entitled to the payment of
compensation in respect of temporary total disablement, permanent
Reasonable medical aid expenses arising out of an injury on duty are
payable for a period of two years, or longer if further medical
Payment of Merit rebates:
To adjust the position of employers who pay substantial amounts in
assessments, which are out of proportion to their accident costs, the
An employer's rate may also be increased or reduced depending on whether
his accident cost experience is favourable or unfavourable.
For further information please contact the office of the Compensation Fund at telephone number (012) 319 9111.
The information provided
herein is based on contents found on the official Compensation Fund
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|National Assistance: 0860 LABOUR/ 0860 522687