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 remaining amendments implemented on 1 February and 1 April 2026. COIDA provides for compensation and medical support to employees who suffer work‑related injuries, occupational diseases, or death. This compensation is 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 and
- 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 increased 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.
Earnings threshold increase
Impact date: Effective 1 May 2026
The earnings threshold under the Labour Relations Act, 1995 (“LRA”) and the Basic Conditions of Employment Act, 1997 (“BCEA”), which provides for certain statutory protections (including Temporary Employment Service (TES) deeming provisions, equal treatment obligations and enhanced termination protections), has been increased with effect from 1 May 2026. The new threshold is ZAR 269,600.90 per annum (previously ZAR 254,371.67 per annum).
Employer implications/action needed Employers and suppliers (including TES providers) should update payroll records, employment contracts and compliance frameworks to reflect the new threshold. Any arrangements structured by reference to the previous threshold should be reviewed.
Employer risk Failure to apply the updated threshold correctly may result in misclassification of workers, exposure to deeming provisions under the LRA, and joint and several liability for non-compliance with applicable labour legislation.
Severance pay (case law)
Impact date: 5 May 2026
The Labour Court refused leave to appeal in a dispute concerning severance pay under section 41(4) of the Basic Conditions of Employment Act 75 of 1997 (BCEA). The court had previously reviewed and set aside an arbitration award in which the commissioner found that employees were not entitled to severance pay because the employer had allegedly secured alternative employment for them.
On the facts, however, the employees had already received offers of employment from a third party before the employer entered into the relevant facilitation arrangement. The court found that there was therefore no factual causal link between the employer’s conduct and the employees obtaining alternative employment. As a result, the commissioner’s conclusion was irrational and reviewable.
The court confirmed that the correct test under section 41(4) is whether the alternative employment was secured “through the efforts of the employer,” which requires a demonstrable causal connection between the employer’s actions and the new employment obtained. Leave to appeal was refused on the basis that there were no reasonable prospects of success.
Employer implications/action needed This judgment reinforces that employers seeking to rely on section 41(4) of the BCEA to avoid liability for severance pay must be able to demonstrate a clear causal connection between their efforts and the employee securing alternative employment. Mere involvement in discussions, facilitation arrangements, or post hoc coordination will not be sufficient where employees had already independently secured alternative employment. Employers should ensure that any redeployment or alternative employment initiatives are proactive, properly documented, and clearly linked to the eventual employment outcome.
Employer risk Where employers cannot establish that alternative employment was obtained through their efforts, severance pay will remain payable in retrenchment situations, potentially increasing dismissal-related costs and litigation risk.
Fair Pay Bill (Employment Equity Amendment Bill)
Impact date: Awaited
On 30 April 2026, the Fair Pay Bill - a Private Members’ Bill introduced by Build One South Africa (BOSA), in partnership with PayMeFairly - was gazetted for public comment. The Bill seeks to amend the Employment Equity Act 55 of 1998 (“EEA”) to address pay transparency and the perpetuation of historical wage inequality. The Bill was first tabled in Parliament in June 2025 and refined through parliamentary legal advisors before being published for comment. Public submissions closed on 30 May 2026.
The Bill introduces three core reforms:
- a prohibition on salary history enquiries - employers will be prohibited from enquiring about or relying on a candidate’s past or current remuneration during recruitment, selection and appointment. The only exception is where, after an offer has been made, the candidate makes a written request for prior remuneration to be disclosed
- pay range disclosure - all job advertisements, transfer or promotion listings must specify the salary or salary band upfront. References to “market-related” remuneration will no longer be permissible and
- a right to discuss remuneration - employees will be entitled to share and compare remuneration details with other employees, and confidentiality clauses preventing such discussions will be unenforceable
Employer implications/action needed Employers should review recruitment processes and application forms to identify any reliance on salary history enquiries. Job advertisements and internal vacancy notices should be assessed for compliance with the proposed pay range disclosure requirements. Employers should also review confidentiality clauses in employment contracts and policies that prohibit employees from discussing remuneration, as such clauses may become unenforceable if the Bill is enacted.
Employer risk If enacted, employers who continue to rely on salary history in recruitment or who fail to disclose pay ranges in job advertisements will face non-compliance with the amended EEA. Employers with confidentiality clauses restricting remuneration discussions risk having those clauses rendered unenforceable, with potential exposure to unfair discrimination claims under the EEA.
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