THE COMPENSATION FUND  

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THE COMPENSATION FUND AND ITS BENEFITS

Who must register:

All persons who employ one or more persons in connection with their business or farming activities, are required to register and to pay annual assessments to the Compensation Fund. These amounts may not be recovered from employees. A separate registration is necessary for each separate branch of a business unless an arrangement for combined registration has been made.

The Revenue of the Compensation Fund:

The revenue of the Compensation Fund consists mainly of annual assessments paid by the registered employers on a basis of a percentage or fixed rate of the annual earnings of their employees.

The Act, however makes provision for a minimum assessment to ensure that the assessment is not less than the administration costs.

At the end of January each year, statement of earnings forms are sent to all the registered employers. These forms must be completed and
returned not later than 31 March.

The financial year of the Compensation Fund runs from 1 March to the end of February of the next year.

The Compensation Fund is also protected by provisions which permit the imposition of penalties on employers who fail to pay assessments, or render wage returns, at a rate of 10% of the assessment.

What is regarded as Wages/Earnings:

For the purpose of assessment, earnings mean any payments made to an employee which arise out of his employment and include :

• Salaries/Wage;

• Commission;

• Cost of living allowance;

• The value of food and quaters supplied free of charge;

• Incentive bonuses; bonuses of a regular nature to which a workman is, in terms of his/her service contract, entitled, i.e. thirteenth cheque;

• Overtime of a regular nature.
  

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Rates and Methods of rating:

The assessment rate, at which an employer is assessed, depends on the nature of an employer's business operations. For rating purposes
employers are therefore divided into different classes and subclasses according to the nature of their activities.

The assessment rates are fixed on the principle that each industry should carry the costs of its own accidents and are reviewed annually.
Any adjustment is therefore in accordance with the accident experience.

Employers are notified annually of the rate applicable to their business/farming operations.

Benefits for the employer:

The Act makes provision for the payment of compensation to employees sustaining an injury on duty.

The employer is protected against all civil claims which may be instituted against him in the event of an injury on duty, even in the
event of alleged negligence.

An employee who is injured on duty is entitled to the payment of compensation in respect of temporary total disablement, permanent
disablement ( according to the degree of disablement ) and death.

Reasonable medical aid expenses arising out of an injury on duty are payable for a period of two years, or longer if further medical
treatment will reduce the extend of the disablement.

For further information regarding the reporting of claims I refer you to the W.CI.8 pamphlet

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Payment of Merit rebates:

To adjust the position of employers who pay substantial amounts in assessments, which are out of proportion to their accident costs, the
system of awarding merit rebates every three years was introduced. The rebate percentage is determined by the ratio between an employer's claim costs and the amount of his assessments.

An employer's rate may also be increased or reduced depending on whether his accident cost experience is favourable or unfavourable.

For further information please contact the office of the Compensation Fund at telephone number  (012) 319 9111. 

The information provided herein is based on contents found on the official Compensation Fund website

For employers:

• Call us on 0860 522687;
• Join on-line
• We will call you: