Every household that employs a domestic worker must register with the Compensation Fund, however few hours she works. It costs 1.04% of what you pay her in a year, with a minimum of R560. Since 2026, inspectors can issue compliance orders and the Fund can impose penalties directly, without going to court. If she's hurt at work and you're not registered, you can be fined up to the full cost of her compensation.
What COIDA is
COIDA is the Compensation for Occupational Injuries and Diseases Act. It created the Compensation Fund, run by the Department of Employment and Labour, which pays out when a worker is injured at work, becomes ill because of her work, or dies from a work injury.
It works like no-fault insurance. Your worker doesn't have to prove you were careless, and in return you're generally protected from being sued for the injury. Employers pay for it through a small yearly assessment. The Fund covers:
- Her medical treatment, paid directly to the doctor or hospital
- Income while she's booked off work for more than 3 days
- A lump sum or pension if she's left permanently disabled
- Support for her family if she dies from a work injury
Think of a fall while cleaning windows, a burn in the kitchen, a back injury from lifting an elderly parent, or a cut while gardening. Her ordinary commute to and from your home isn't covered, but transport you arrange for work is.
Why domestic workers are covered now
For almost 30 years domestic workers were left out of COIDA. That has changed in three steps:
- 19 November 2020In Mahlangu v Minister of Labour, the Constitutional Court ruled that excluding domestic workers was unconstitutional, and applied the ruling back to 27 April 1994.
- 10 March 2021The Compensation Fund told all employers of domestic workers to register and submit yearly returns.
- 23 January and 1 April 2026The COIDA Amendment Act came into force. It writes domestic workers into the law, creates COIDA inspectors and replaces slow criminal prosecutions with administrative penalties. The penalty provisions apply from 1 April 2026.
Under the amended Act, workers can report older injuries too. A domestic worker hurt at work before 23 January 2026 has until 23 January 2029 to bring the accident to the Fund's attention.
Who must register
You must register if you employ anyone to work in or around your home, including:
- Housekeepers, cleaners and nannies
- Caregivers for an elderly, sick or disabled family member
- Gardeners and drivers
There's no minimum number of hours and no earnings threshold. A gardener who comes one morning a month is covered. One registration covers all the domestic workers in your household.
| COIDA and UIF are different | COIDA | UIF |
|---|---|---|
| What it covers | Injuries and illness caused by work | Lost income when a job ends, or during illness or maternity leave |
| Who must register | Every domestic worker, any hours | Workers on more than 24 hours a month |
| How you pay | Once a year, after your Return of Earnings | Every month (1% from you, 1% from her) |
You need both registrations. Being registered for UIF doesn't mean you're registered for COIDA.
What it costs
There's no monthly payment. Once a year the Fund charges households 1.04% of what you paid your domestic workers in the year, with a minimum of R560 (2026/27 rates). Wages include the value of any food and accommodation you give her. If you pay less than about R4,490 a month, you'll pay the R560 minimum.
| Her hours (at the R30.23 minimum wage) | Wages a year | 1.04% | You pay |
|---|---|---|---|
| 1 day a week (8 hrs) | R12,575.64 | R130.79 | R560.00 |
| 3 days a week (8 hrs) | R37,727.04 | R392.36 | R560.00 |
| 5 days a week (8 hrs) | R62,878.44 | R653.94 | R653.94 |
| 5 days a week (9 hrs), full time | R70,738.20 | R735.68 | R735.68 |
For most households that's less than R70 a month for cover worth hundreds of thousands of rand if something goes wrong.
Work out your COIDA cost
Enter the total you pay all your domestic workers each month, including the value of food or accommodation.
How to register
Register as soon as your worker starts. If she's been with you for years and you never registered, register now. You'll get a Compensation Fund registration number, often called a CF number.
- Gather your documents
- A completed CF-1E form (registration of a domestic worker employer)
- A copy of your ID, passport or work permit, and proof of your address
- A copy of your worker's ID, passport or work permit
- A copy of her employment contract
- Submit them to the Compensation Fund online at cfonline.labour.gov.za, by email to RegistrationCF@labour.gov.za, or at your nearest Labour Centre.
- Keep your CF number safe. You'll need it for every Return of Earnings, for payments and if you ever need to report an injury.
The online system can be slow and the paperwork is fiddly, which is why many families hand it to us. Our Payroll, UIF & COIDA service handles the registration for you.
The yearly Return of Earnings
Once registered, you submit a Return of Earnings every year. It declares what you paid your workers in the past year (1 March to the end of February) and estimates the coming year. The Fund then sends you an assessment, which you pay within 30 days.
- The Fund announces the filing window each year. In 2026 it ran from 1 April to 30 June.
- Filing late adds a penalty of 10% of your assessment, and unpaid assessments attract interest.
- Once you're up to date, you can download a letter of good standing. Some estates and labour inspectors ask to see it.
If your worker is injured at work
- Get her medical help straight away, and arrange transport to the doctor or hospital and home again. Arranging this transport is a legal duty.
- Write down what happened while it's fresh: the date, time, what she was doing and who saw it.
- Report it to the Compensation Fund within 7 days on form W.Cl.2 (Employer's Report of an Accident), even if the doctor's report isn't ready yet. Ask the doctor for the first medical report (W.Cl.4).
- Keep paying her if she's booked off for more than 3 days. You pay her compensation for the first 3 months and the Fund refunds you. Never deduct it from her wages.
- Keep copies of everything for at least five years.
The risks and fines if you don't comply
Your worker's right to claim doesn't depend on you being registered. The Fund will still look after her, and then turn to you for the cost. Since the amended Act came into force, the Fund can impose these penalties directly, without a court case:
| If you… | You can face |
|---|---|
| Never registered, and she's injured at work | A fine of up to the full compensation payable for her injury: medical bills, time off and any disability payout Highest risk |
| Report an injury later than 7 days | A penalty equal to the full compensation payable, plus interest from the date of the accident |
| Don't pay her first 3 months of time-off compensation | Double that amount, plus interest |
| Don't arrange her transport to medical care | The full cost of that transport |
| Don't keep proper records | Up to 10% of your yearly assessment |
| File your Return of Earnings late, or pay late | A 10% penalty on your assessment, plus interest |
| Ignore an inspector's compliance order | A fine set by the Compensation Commissioner, and the order can be made an order of the Labour Court |
Here's what that can mean. Your housekeeper slips on a wet floor, breaks her wrist and needs surgery and two months off. Registered, you pay her for the time off and the Fund refunds you and covers the hospital. Not registered, you could be fined the whole amount, which can run to tens of thousands of rand, compared with about R700 a year to be registered.
The new COIDA inspectors can investigate complaints, ask for your records and issue compliance orders. They need your consent or a Labour Court order to enter a home, but an injured worker, a neighbour or a union can lodge a complaint at any time, and the claims window is now three years.
Your employer checklist
- You're registered with the Compensation Fund and have a CF number
- Your worker has a signed employment contract
- You've filed this year's Return of Earnings and paid the assessment
- You keep payslips and records for at least five years
- You know to report any work injury within 7 days
- You're also registered for UIF if she works more than 24 hours a month
Frequently asked questions
Do I need COIDA if my domestic worker only works one day a week?
Yes. COIDA has no minimum hours. A worker who comes in one day a week, or even one morning a month, is covered and her employer must register. You'll usually pay the R560 yearly minimum.
Is there a monthly COIDA payment?
No. COIDA is a yearly assessment based on the Return of Earnings you submit. UIF is the one you pay every month.
I've employed my housekeeper for years and never registered. What should I do?
Register now and submit any outstanding Returns of Earnings. Getting compliant before an accident or a complaint is far cheaper than paying a penalty afterwards. We can do this for you.
Can I deduct COIDA from my worker's wages?
No. COIDA is paid by the employer only. Unlike UIF, nothing is deducted from her pay.
Does household insurance cover my domestic worker instead?
Some policies include domestic worker liability cover, but it doesn't replace COIDA. The law still requires you to register with the Compensation Fund.
Register for COIDA without the paperwork.
We register your household for COIDA and UIF, submit your Return of Earnings each year, and prepare payslips. Or let us find you a vetted nanny, housekeeper or caregiver.
Sources: Compensation for Occupational Injuries and Diseases Act 130 of 1993; COID Amendment Act 10 of 2022 and Proclamation Notice 306 of 2026 (Government Gazette 53990, 23 January 2026); Mahlangu and Another v Minister of Labour and Others, Constitutional Court, 19 November 2020; Compensation Fund notice to employers of domestic employees (10 March 2021); Compensation Fund minimum assessment and Class M rate for 2026/27.
This guide is general information, not legal advice. Rates and dates are correct as of the update date above.