The Compensation Fund

The compensation fund 

The compensation fund was established in terms of section 15 of the compensation for occupational injuries and disease Act. The objective is to provide insurance for employees against any occupational diseases and injuries that can be contracted in the workplace.

Any employer with employees is required to register with the compensation fund and obtain a letter of good standing to be covered by the fund. The employer is required to submit return of earnings on an annual basis to be compliant with the fund. In term of section 82, Return of earnings is an estimation-based model where employers are required to provide actual earnings for employees for that year and provisional earnings for the following year.

The benefits of registering with compensation fund:

• Employers getting certificate of compliance.
• Business is insured against any litigation relating injuries and disease.
• Employees are insured and eligible to medical benefits.

The annual return of earnings can be submitted on the following platforms:

• CF-Filling Online system
• Walk-in’s centres
• Call centres
• Labour centres

Process of submission of Return of earnings 

The opening period for submission of Return of earning is 1 April each year to June each year. Depending on the opening date the fund can extend the due date if there are any technical issues during the submission process. The assessment period is a 12-month cycle. The Return of earnings covers the earnings from 1 March of the previous year to the last day of February of the current year. Each year the minister of employment and labour issues regulations regarding assessment rate, minimum assessment amount, and maximum earnings threshold.

How to calculate return of earnings for 2026:

• Sum all earnings for all employees for previous year e.g. (1 March 2025 to 28 Feb 2026)
• Apply a threshold for the year: Ensure no employee annual earnings exceeds the maximum cap of R633 168
• Provisional earnings: Estimate the total earnings for the upcoming year based on the previous year and adjustments for expected future changes. Cap for 2027 to be confirmed by the minister.

Most submissions for Return of earnings are submitted on CF-filling online platform. To submit the return online the employer must be registered and have CF-filling online profile. The portal provides ROE (W.As.8/W.As.8a) form. It also provides employer registration, maintenance of the profile and user registrations and generating letter of good outstanding.

The fund requires the following supporting documentation for submission of the Return of earnings:

• Detailed payroll report (Mandatory)
• Confirmation of employer registration (Mandatory)
• Annual financial statements
• SARS EMP501/Tax exemption certificate
• Power of attorney
• Affidavit

After submission of the Return of earnings, the system will generate an invoice. The invoice will detail the assessment amount, rate applied, amount payable, and the banking details. The invoice is payable 30 days from the date the invoice was issued. Once payment is made, a letter of good standing can be generated. Under the updated 2026 legislation, failure to submit the return of earnings and make payment within the due date can result in a fine equal to 10% of the final assessment.

Should your assessment have huge variances, the fund will flag Return of Earnings for an audit. No invoice will be issues until the audit is finalised. The supporting documents for the audit can be submitted on the platform. Supporting documents required for the audit as Gazetted 52333 18-3-2025 are as follows:

• Detailed payroll report
• Confirmation of employer registration
• Annual financial statements
• SARS EMP501/Tax exemption certificate
• Manual return of earnings
• Power of attorney
• Affidavit

All the documents listed above must be submitted for the audit to be completed. A reference number will be issued for follow up purpose. Once the audit is completed, the fund will issue an invoice, and upon payment, a letter of good standing can be generated.

Contact our team for any enquiries regarding the submission of your returns. 

Winny Sekgotha 

Assistant Manager