Return of earnings season, in one place
Once a year every registered employer has to tell the Compensation Fund what it actually paid its people, and estimate what it will pay in the year ahead. The Fund then issues the assessment, and only once that is paid does the letter of good standing come out. Miss the window and you can be assessed on the Fund’s estimate with a penalty on top. Here are the dates, the numbers and the traps.
The numbers you need
| Figure | Amount | Applies to |
|---|---|---|
| Earnings ceiling | R668 000 per employee per year | From 1 March 2026, used for the provisional column |
| Earnings ceiling | R633 168 per employee per year | From 1 March 2025, used for the actual earnings column |
| Minimum assessment | R1 621 | Ordinary employers |
| Minimum assessment | R560 | Employers of domestic workers |
| Late filing penalty | Up to 10% of the final assessment | Returns filed after the season closes |
| Payment terms | 30 days from the invoice | The notice of assessment |
The calculation itself is simple: assessable earnings divided by one hundred, multiplied by your industry tariff. Each employee counts only up to the ceiling, so a director on R1.2 million adds the ceiling amount, not the full salary.
What the return asks for
The return is the CF-2A, still referred to in gazettes by its old name W.As.8. It has two columns: actual earnings for the year that has just ended, month by month, and provisional earnings for the year ahead. Employees and directors or members are declared separately, and the cash value of free food or quarters is included.
- Actual earnings for the past year, split by month, for employees and separately for directors and members.
- Provisional earnings for the year ahead, which the Fund uses to raise the next assessment.
- Supporting uploads. Recent seasons have required a confirmation of employer details form and a detailed payroll report for the earnings year.
- Audit documents where flagged: the EMP501 reconciliation, a detailed payroll report, financial statements, an affidavit explaining a large variance, and a power of attorney if a consultant files for you.
- No nil returns. The Fund does not accept zero earnings. A business that has ceased files the cessation form with the return.
Filing is on the Compensation Fund’s online system. Errors can be revised within sixty days of the assessment by writing to the Fund’s call centre.
The order things happen in
- The Fund announces the season and usually shuts the system briefly beforehand to prepare it.
- You file the return with actual and provisional earnings and the supporting documents.
- The Fund issues a notice of assessment. Earnings times tariff, subject to the minimum.
- You pay within 30 days of the invoice, or interest and a penalty follow.
- The letter of good standing is issued once the return is in and the assessment is paid, or an instalment arrangement is in place.
- Mandators verify it. A main contractor must obtain and verify the letter from every subcontractor, failing which the mandator carries the liability. That is why site access depends on it.
What actually goes wrong
- Declaring gross payroll without applying the ceiling. Over-declaring costs real money every year, and the two columns use different ceilings.
- Forgetting directors. Working directors and members who draw a salary are declared, in their own section of the form.
- A provisional estimate pulled out of the air. A large variance between provisional and actual is what triggers the audit document request.
- Filing and not paying. The letter of good standing needs both.
- Leaving a dormant registration open. Unfiled returns accumulate estimated assessments and penalties on a business that stopped trading years ago.
- Assuming the letter lasts. It lapses when the next return falls due, so it is an annual job, not a once-off.
See the assessment before the invoice does
Put your annual payroll and industry class into the free COIDA calculator and get a realistic estimate on the current tariffs, with the ceiling and the minimum assessment applied for you.
Estimate my assessmentFrequently asked questions
When is the return of earnings due?
The Compensation Fund opens a filing season each year and announces the window. The most recent season ran from 1 April to 30 June, covering earnings for the year that ended in February. The statutory default in the Act is before 31 March each year or as the Director-General communicates, so the gazetted season dates are what to watch.
What is the earnings ceiling?
R668 000 per employee per year from 1 March 2026, and R633 168 for the year from 1 March 2025. The return has two columns, so you apply the older ceiling to the actual earnings you are declaring and the new one to the provisional earnings for the year ahead.
What happens if I file late?
The Director-General may raise an assessment on an estimate of your earnings and impose a penalty of up to ten percent of the final assessment. The letter of good standing is also withheld until the return is filed and the assessment is paid, which is what usually forces the issue for contractors.
What is the minimum assessment?
R1 621 a year for ordinary employers and R560 for employers of domestic workers. If your payroll multiplied by your tariff comes to less than that, you pay the minimum.
Can I file a nil return?
No. The Fund does not accept a zero earnings return. If the business has ceased operating you file the cessation form together with the return so the account can be closed properly, rather than leaving it to accumulate estimated assessments.
How do I fix a mistake?
Revisions can be requested within sixty days of the assessment through the Fund’s call centre, with the corrected figures and supporting payroll evidence.
Keep exploring
Sources: the Compensation for Occupational Injuries and Diseases Act 130 of 1993, sections 80, 82, 83 and 86; the Government Gazette notices prescribing the CF-2A return and the maximum and minimum earnings for 2026/27 and 2025/26; Compensation Fund notices on the filing season and system availability; the Department of Employment and Labour COIDA service book. Season dates are announced annually and can be extended by gazette, so confirm the current window before relying on a date. Information, not advice.