How much does COIDA registration cost in South Africa in 2026?
Registering as an employer with the Compensation Fund is free. The money is the annual assessment, set by your payroll and the industry class the Fund puts you in, and the service fee if you have someone do the paperwork. Here is every rand, and the seven day rule that catches new employers.
Independent, not a government body. ProperSA is a private company. Everything in this guide can be done directly with the authority at its own fees; our service fee pays for it to be prepared, lodged and followed up for you.
The three amounts
- Registration fee: none. The Compensation Fund does not charge to register an employer. You register on the Fund’s online system or by submitting the W.As.2 form.
- Annual assessment: your payroll times your tariff. Every employer is placed in an industry class, and each class carries a tariff. An office based business sits near 0.18% of payroll; construction, transport and security sit near 2.65%. The minimum assessment for 2026/27 is R1 621 a year for a commercial employer and R560 for a domestic employer, and earnings above R668 000 per employee are not assessed.
- Service fee, if someone files for you. ProperSA charges R1 290 for the registration, the first return of earnings and the request for your first letter of good standing. Nothing else comes to us; the assessment is paid to the Fund.
Worked examples
- An office business with a payroll of R500 000 a year at 0.18% is assessed at R900, which the minimum lifts to R1 621.
- A cleaning or security business with the same payroll at 2.65% is assessed at R13 250.
- A builder with a payroll of R1 200 000 at 2.65% is assessed at R31 800. Builders now register with the Fund too: since October 2026 the Fund has placed a hold on new policies with the building industry mutual, which can transfer a policy later.
The rule that costs more than the fee
- An employer must register within seven days of hiring the first employee. The 2022 Amendment Act, in force from 2026, lets the Commissioner impose the full compensation on a claim as a penalty on an employer who was unregistered when an employee was injured.
- The return of earnings is due between 1 April and 30 June every year; filing it late adds a 10% penalty to the assessment, and an unpaid assessment blocks your letter of good standing.
- Your industry class is set from the description you give at registration and stays for years. A vague description puts you in a higher class, which is why the description is worth getting right the first time.
What you get for the assessment
Cover for every employee for injuries and diseases arising from work: medical costs at the Fund’s tariff for two years, 75% of earnings during temporary disablement, pensions and lump sums for permanent disablement, and death benefits for dependants. The employer is protected from being sued by the employee for the injury. And once the assessment is paid, the Fund issues the letter of good standing that tenders and clients ask for.
Frequently asked questions
Is COIDA registration free?
Yes. The Compensation Fund charges no registration fee. The cost is the annual assessment, which is your payroll multiplied by the tariff for your industry class, with a minimum of R1 621 a year in 2026/27 (R560 for a domestic employer).
How much is the COIDA assessment for a small business?
Between the R1 621 minimum and a few thousand rand for most small employers. An office business pays around 0.18% of payroll; construction, transport and security around 2.65%. On a R500 000 payroll that is R1 621 or R13 250 respectively.
Who must register with the Compensation Fund?
Every employer with one or more employees, within seven days of the first hire, including households employing a domestic worker. Directors who draw a salary count as employees.
What does ProperSA charge for COIDA registration?
R1 290, a fixed service fee covering the registration, the first return of earnings and the request for your first letter of good standing. The assessment is paid to the Fund, not to us, and we check your industry class before the registration goes in.
What happens if I do not register?
You cannot get a letter of good standing, so you lose tenders and site access, and if an employee is injured the Commissioner can impose the full compensation on the claim as a penalty on you. Registering late is far better than being found unregistered.
Figures from the Compensation Fund minimum assessment and maximum earnings notice for 2026/27 (Notice 3910 of 24 April 2026), the gazetted Tariffs of Assessment, and the Compensation for Occupational Injuries and Diseases Act as amended by Act 10 of 2022. General information, not legal, tax or financial advice. Figures were checked on 15 October 2026; authorities change fees and rules, so confirm anything you rely on.