South Africa
Changes to compensation for occupational injuries and diseases
Impact date: 23 January 2026: most substantive amendments, (including definitions, reporting procedures and rehabilitation and reintegration framework)
1 February 2026: the governance-related sections relating to restructuring of the Compensation Board, take effect
1 April 2026: the enforcement and penalty provisions, assessment deadlines and interest mechanisms commence Amendments to the Compensation for Occupational Injuries and Diseases Act 10 of 2022 (COIDA) came into effect on 23 January 2026, with the rest of the amendments being implemented on 1 February and 1 April 2026. The COIDA system refers to the no‑fault compensation system which provides compensation and medical support to employees who suffer work‑related injuries, occupational diseases, or death. The COIDA is mainly administered via the Compensation Fund under the Department of Employment and Labour.
The reforms include a shift from criminal offences to administrative penalties, extended prescription periods, expanded employer liability, strengthened inspectorate powers, a broader definition of employees and accidents, and a formalized rehabilitation and return to work regime. Employers who actively participate in the rehabilitation of temporarily disabled employees may now qualify for an assessment rebate.
Employer implications/action needed
- employers must update their COIDA reporting procedures, improve and formalize how incidents are reported, and respond promptly to requests from the Compensation Fund
- employers must retain records relating to injuries and payroll for longer periods, track incidents, and put measures in place to prepare for possible delayed claims
- employers must ensure compliance documents are easily accessible, contractor arrangements must be reviewed, transport policies updated, and rehabilitations and return-to-work programs must be aligned with the Compensation Fund
Employer risk Non-compliance with the COIDA will expose employers to penalties and increased liability.
National Minimum Wage increase
Impact date: 1 March 2026 The National Minimum Wage will increase to R30.23 per hour, applicable to most workers including domestic and farm workers, while Expanded Public Works Programme (EPWP) workers will earn R16.62 per hour. Sector‑specific updates include revised minimum rates for the Contract Cleaning Sector and the Wholesale and Retail Sector.
Employer implications/action needed
- employers must update payroll systems to apply the new statutory minimum rates across all worker categories and ensure sector‑specific wages reflect the revised amounts
- employers must also review all contracts, budgets, and cost structures before 1 March 2026, in order to ensure compliance
Employer risk If employers fail to implement the new rates in compliance with the National Minimum Wage Act, they will expose themselves to penalties and possible claims, or enforcement action by the Department of Employment and Labour.
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