COIDA Assessment Thresholds Rise for 2025/2026: What Employers Need to Know
- John Botha
- 6 hours ago
- 2 min read
South African employers will see changes in the assessment thresholds for the Compensation for Occupational Injuries and Diseases Act (COIDA) in the 2025/2026 financial year. The Department of Employment and Labour has announced new minimum and maximum annual earnings figures, which directly impact the calculation of employer contributions to the Compensation Fund.
Year-on-Year Increases
The maximum annual earnings per employee-used as the cap for assessment purposes-will rise from R597,328 in 2024/2025 to R633,168 in 2025/2026, representing a 6% increase. This follows a 4.99% increase in the previous year, when the cap moved from R568,959 in 2023/2024 to R597,328.
Meanwhile, the minimum assessment payable by employers will increase from R1,530 to R1,621 in 2025/2026, marking a 5.95% hike. The minimum assessment remained unchanged between 2023/2024 and 2024/2025.
Table: COIDA Assessment Thresholds and Increases
Assessment Year | Maximum Annual Earnings (ZAR) | Max Earnings YoY % Increase | Minimum Assessment (ZAR) | Min Assessment YoY % Increase |
2023/2024 | 568,959 | – | 1,530 | – |
2024/2025 | 597,328 | 4.99% | 1,530 | 0.00% |
2025/2026 | 633,168 | 6.00% | 1,621 | 5.95% |
What This Means for Employers
Employers must use these updated thresholds when submitting their annual Return of Earnings (ROE) to the Compensation Fund. The maximum earnings cap means that even if an employee earns more than the threshold, only the capped amount is considered for assessment purposes. The minimum assessment ensures that all employers contribute a baseline amount to cover administrative costs.
The adjustments reflect ongoing efforts to keep the compensation system aligned with wage inflation and the cost of living, ensuring adequate coverage for employees injured or made ill at work.
Employers are encouraged to review their payroll systems and ensure compliance with the new thresholds ahead of the next ROE submission period.
Join us at our Mid-Year Labour Law Update, where we'll unpack over 40 cases, following themes that are emerging in case law and statutory amendments, and which can not be ignored (Digital Transformation and Employment Law; Recent Labour Court, Labour Appeal Court and Constitutional cases; NEDLAC Proposed amendments on the LRA, BCEA, EE, and NMW Acts; Risk Management and Compliance)
Innovation in LR Practices. This year's theme is Labour Law Evolution: The New Face of
Labour Relations & Case Law in Disrupted Businesses. What you'll gain:
Master the Digital Transformation of Labour Law in 2025
200+ Labour Law Cases Unpacked by Jonathan Goldberg
Critical Updates on Upcoming Legislation & NEDLAC Amendments
Navigate Workplace Challenges from the Digital Era to Discrimination Laws
Comments