COIDA and Employers of Domestic Workers

Government has gazetted new rules for domestic workers in South Africa, which will see them covered under the Compensation for Occupational Injuries and Diseases Act (Coida).

The changes, which were officially introduced in March, confirm that domestic workers are now covered under the act for illness or injury contracted at work.

What protection does this cover offer your employee?

In the event that they fall ill or suffer an injury as a direct result of their employment, they will be able to claim compensation for temporary or permanent disability, assistance with medical bills, orthotic or assistive devices and rehabilitation services.

In the event of their death, their dependants 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.

What does this mean for employers?

Along with the Unemployment Insurance Fund (UIF), employers will need to pay towards the COIDA to ensure their domestic employee(s) are covered, as commercial businesses currently do.

The definition “domestic worker” includes your domestic helper, gardener, nanny, caregiver and chauffeurs employed in private households irrespective of the number of hours that they work in the private household.

Where an employment contract already exists, a domestic worker should be registered by an employer as soon as possible.

When must I register?

Going forward – within 7 days of signing an employment contract with a new employee

For existing employees – as soon as possible. It seems likely that penalties for non-registration will kick in after the end of March 2022.

If you fail to register you will be opening yourself up to substantial penalties and possible claims in the event your employee is injured at work.

How do I register?

Download Government Gazette number 44250. Included in this document (pages 12-16) is the CF-1E form – Application for the registration of the domestic worker employer. Print out a copy and fill it in with your particulars.

Prepare the following documents:

  • Completed CF-1E form
  • A copy of your ID, passport or work permit
  • Proof of your residential address
  • A copy of your employee’s ID, passport or work permit
  • A copy of the employment contract

Email all of the above documents to RegistrationCF@labour.gov.za or CFCallcentre@labour.gov.za, requesting to be registered as a domestic employer.

What happens after I have registered?

All registered employers, including those of domestic employers, must register as users on the CompEasy system (https://compeasy.labour.gov.za/), enabling them to submit claims in terms of COIDA.

You will be required to submit an annual Return of Earnings for your domestic worker, confirming their income and other benefits over the past year. This will need to be done between 1 April and 31 May each year.

The Compensation Fund will use this statement of earnings as the basis for its calculation of how much is due as the annual fee. It is calculated based on earnings and the risk profile of the job. At present, domestic workers fall under Class M, sub-class 2500, with the risk assessment rate of 1.04

The levy will be calculated using this formula:

Annual earnings / 100 x the assessed risk rate = annual assessment payable.

So, for an employee earning R5000 per month – that’s R60 000 per year – the calculation would be as follows:

R60 000 /100 x 1.04 = R624.00

Once the amount due has been calculated, the Compensation Fund will email you an invoice. This invoice must be settled with 30 days, or interest penalties will kick in.

Good to know:

You need to register them even if they do not work full time.

This applies even to employees who work for multiple employers – each of those employers will need to register them.

The amount is payable only ONCE a year, not monthly like UIF

You may NOT deduct this amount from your employee’s regular earnings

How can FEOSA help?

FEOSA assist its members with 24-hour labour advisory services. We can assist you with your registration and claims, if you have any questions get in touch and we will assist.

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