The Department of Labour’s Compensation Fund has warned companies that
unless they now meet the extended deadline of 30 April to submit the
Compensation for the Occupational Injuries and Diseases (COID) return,
they face paying penalties. The returns are usually due by 31 March.
Grant Lloyd, MDof payroll software developer Softline Pastel Payroll, says
the extension demonstrates the difficulties some companies have in
compiling these returns manually. Companies are required to contribute a
percentage determined by the Commissioner of every employee’s earnings
In addition, automated payroll solutions provide the employer with the
applicable annual remuneration values required by the Department of Labour
to be inserted on to the applicable COID return of earnings. This ensures
that the contributions are calculated in line with the COID Act
“For SMEs conducting this return manually is a time-consuming,
non-profitable task. Modern payroll software, however, will automatically
calculate the applicable earnings up until the annual maximum amount,”
The Department of Labour issued a statement to explain the one-month
extension of the COID return deadline, stating that the decision to give
companies another month to process their returns reflected the Fund’s
approach of partnering with clients to ensure strict adherence to the law.
Spokesperson Zolisa Sigabi said the Department of Labour was not out to
simply impose hefty penalties against non-complying employers without
giving them ample opportunity to abide by the law.
The Department of Labour also felt it was only fair to extend the deadline
as some employers had encountered technical problems in trying to gain
access to the Department’s website for the applicable return of earnings
“It is in this spirit that we urge employers who have not submitted to do
so immediately to avoid penalties,” Sigabi saiys.
He adds that employers, as key stakeholders in the administration of the
COID Act, would realise their important role in strengthening support for