While the uptake in domestic employers registering their employees for UIF purposes has improved, we have noticed that very few employers have registered with the Compensation Commissioner for Workman’s Compensation purposes. The Constitutional Court in 2020 confirmed that domestic workers should be covered by COIDA (or the Compensation for Occupational Injuries and Disease Act). This means that they may now claim for injuries, disabilities or illness acquired while on the job, including compensation for temporary or permanent disability, assistance with medical bills, orthotic or assistive devices and rehabilitation services (these were previously excluded). In the event of their death, their dependents can claim compensation from the fund for funeral expenses and ongoing support in the form of a widow/widower’s pension or lump sum, a child pension or additional dependency award to cover parents, siblings and other family members who may have been dependent on the employee. This change in legislation means that all employers of domestic workers (including gardeners) – whether part-time, casual, temporary or full-time – must register themselves and their employees with the Compensation Commissioner.
When registering you as an employer, the Compensation Commissioner will allocate you to risk rate 1.04. This is the rate applied to all domestics. This rate will be applied to the domestic’s earnings for the period 1 March to 28 February to arrive at the annual liability. The provisional payment made on registration is offset against this final liability. Please note that the minimum annual liability is R 463. This liability is raised by the submission of the Annual Return of Earnings. This return must be submitted between 1 April and 31 May each year to avoid the raising of penalties and interest. HRTorQue can assist you with this process annually.
If you haven’t yet registered, we can help you! We’re currently in the 2022 COID year of assessment so registration would be as of 1 March 2022.
Email me on [email protected] for more information, or take a look at our consulting services we offer in this space.