From a twisted ankle to the loss of a limb, no matter how big or small an injury, if it happened to you while working and you are now unable to collect your salary at the end of each month, you need to know that you are financially protected.

How are you financially protected you may be wondering? Well, by law, every employer who has one or more employees is required to pay an annual fee to the Workmen’s compensation fund.

What is the Workmen’s compensation fund?

The Workmen’s compensation fund, or the Compensation Fund, is a type of insurance that acts as a salary replacement should you, as an employee, get injured or sick at work or pass on as a result of these injuries or illness. For example, if you are a chef and cut your finger badly while on the job and you are now unable to work due to the injury, you will still receive your salary from the Compensation Fund. Your medical expenses, such as a hospital visit and stitches, will also be covered.

Is everyone covered by Workmen’s compensation?

Whether you are a full-time or casual employee you will be covered by the Fund if you are injured at work or become ill from your injury.  However, there are a few exceptions and if you fall into one of the below categories, you won’t be able to claim compensation:

  • If you are a worker in a private household
  • If you are receiving military training at the time of your injury
  • If you are a member of the South African National Defence Force, or the South African Police Service – they have their own private fund for this
  • If you have been employed outside of South Africa for 12 or more continuous months
  • If you work mainly outside South Africa and are only temporarily employed in the country

Will monthly contributions be taken off my salary?

Unlike UIF and PAYE, no monthly contributions will be taken off your salary. It is up to your employer to pay an annual fee at the expense of the business.

How do I know if I can claim?

As mentioned in the beginning of the blog, it doesn’t matter how bad your injury is, in order to be covered by Workmen’s compensation the injury must have happened on your company’s premises or while partaking in work related activities in order for you to claim. Don’t forget though, that you may only claim from the Fund for salary repayment if your injury makes it impossible for you to work – either for a temporary span or for the rest of your life.

It is also important to note that you will be covered by the fund if you get ill as a result of the injury or your workplace conditions. For example, many miners develop illnesses due to working in the mines all day.

Lastly, if you die due to this injury or illness, your dependents will be paid out by the Fund for the rest of their lives.

How will I receive my money?

Your monthly benefit is paid differently depending on the type of injury or illness you have. If the injury or illness is temporary and you will be returning to work in the near future, the Workmen’s compensation office sends the money to your employer who will then pay it to you either in cash or into your bank account. Your payments will stop once you are able to return to work.

If your injury or illness is permanent and you are unable to ever return to work, be it with your current employer or a new employer, a lump sum of money is paid to your employer who will then give it to you. As above, you can choose to be paid in cash or via EFT into your bank account. A pension is also paid directly into your bank account for the rest of your life.

* Don’t forget that your employer needs to fill out the necessary claim forms and send them to the Department of Labour before you can start receiving your compensation. To can find these forms on the Department of Labour’s website.