Workers’ compensation fund in the black

7 July 2011

The Department of Labour’s Compensation Fund reported a surplus of R3.2-billion in the past financial year, as the number of companies registered with the fund grew to 420 000.

The fund raised R5.2-billion in assessment revenue compared to R4.8-billion in the previous financial year, an increase of eight percent.

The accumulated financial standing of the fund was R26.5-billion, fund commissioner Shadrack Mkhonto said in a statement on Tuesday.

Five percent of this would go towards investment in job creation projects.

“The compensation fund is the biggest medical aid in the country covering more than 11-million members, most of whom are workers and employers,” Mkhonto said.

The fund, which is financed by levies paid by employers, compensates workers who are injured or suffer from diseases contracted during their employment. It also covers death resulting from such injuries or diseases.

The fund became embroiled in controversy last year when a presentation to Parliament’s portfolio committee on labour revealed a R1-billion decrease in compensation paid out to injured workers in the 2009/10 financial year.