COIDA

What is COIDA?

COIDA is an insurance that covers your employees in the case where they are injured whilst on duty or contract a disease.

Who needs to register?

All business have to register, whether it’s a private company or close corporation, you have to register. The business needs to be registered as soon as the first employee is employed.

What happens after registration?

The business have to submit a return of earnings to COIDA every year in May. The information submitted on this return includes the actual salaries for the past financial year. It also includes the provisional salaries for the next financial year.

As soon as the return is submitted, the department of labour will issue an assessment. The amount payable is based on rates that are published by the South African government on an annual basis. The rate linked to different industries is relative to the working conditions employees are exposed to. Thus, someone who only has admin employees will pay less than the owner of a construction company.

Letter of good standing

After the assessment is paid, the business will be issued with a letter of good standing which is valid for one year.

If the business does not have the financial ability to pay the whole assessment amount in one instalment, a payment arrangement can be made with the department. They will then issue a letter of good standing which is valid for one month with each instalment, until the whole amount is paid.

We can assist to register your business with COIDA, click here for more information.