Returns of Earnings (ROE): What They Are and Why They Matter

A Return of Earnings (ROE) is an annual submission that employers in South Africa must file with the Compensation Fund under the Compensation for Occupational Injuries and Diseases Act (COIDA). This submission reports the total earnings paid to employees in the previous financial year and is used to calculate the employer’s annual assessment fee.

Why Are Returns of Earnings Important?

1. Compliance with COIDA
   Employers are legally required to submit ROEs to ensure compliance with COIDA. Failure to do so can result in penalties, interest charges, or even restrictions on obtaining a Letter of Good Standing.

2. Accurate Compensation Fund Contributions
   The Compensation Fund uses the information in the ROE to calculate the employer’s annual assessment fee, which is a percentage of total employee earnings. This fee ensures that employees are covered for work-related injuries and diseases.

3. Essential for a Letter of Good Standing
   A Letter of Good Standing is only issued to employers who have submitted their ROE and paid their assessment fees. Without this, businesses may struggle to secure contracts or meet legal obligations.

4. Protection for Employees
   Submitting ROEs ensures that employees are covered under COIDA, meaning they can receive medical care and compensation if they suffer a workplace injury or illness.

5. Avoiding Penalties and Legal Issues
   Late or incorrect ROE submissions can result in penalties and legal action. Submitting accurate and timely returns helps employers avoid unnecessary costs.

When and How to Submit a Return of Earnings

• The submission period usually opens on 1 March each year and covers the previous financial year.
• Employers must declare total employee earnings, excluding certain allowances and benefits.
• The ROE is submitted via the Compensation Fund’s online portal or manually to the Department of Employment and Labour.
• Once submitted, the Compensation Fund calculates the assessment fee, which must be paid before a Letter of Good Standing can be issued.

Need help submitting your Return of Earnings? We can assist you in ensuring compliance and avoiding penalties. Contact us today!

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