Since the amendment to legislation to include domestics in the definition of ‘employee’ for COID purposes there have been concerns as to the cost implications of legislative compliance in this space. One of the concerns was whether there would be some leniency shown in terms of the annual minimum assessment amount. This concern has since been addressed by the Government Gazette 44702 that was issued on 15 June 2021.
This notice introduces a minimum assessment of R381 for domestic employers in terms of Section 83(1) of the COID Act. Whilst no effective date has been specified, it is noted that provisional COID assessments that have been raised on new registrations since the publishing of the Government Gazette have applied the R381 limit. Above the minimum COID will be levied at 1.04% on the annual salary amounts paid to domestic employees.
It is important to note that in terms of Government Gazette 44422, dated 7 April 2021, the minimum assessment for employers in general was increased to R 1,284.