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There was an incident at work and now one of your employees is disabled! How much must you pay?

by , 13 August 2015
Disabilities can easily result from an incident in the workplace. And the amount you pay will depend on the disability. There are two types of disabilities: Temporary and permanent. Here is how you should pay for each one...

Temporary disability:

An employee who is temporarily disabled is someone who is temporarily unable to perform all the tasks for which he/she was employed. 
It should only last a few months at most.

You must pay 75% of the employee's salary from the date of the incident until such a time that he/she stabilises or begins working again. 
Monthly compensation is currently capped R12 624

You will be responsible for paying the compensation for the first three months from the date of the incident, after which you will be repaid by the Director-General or mutual association. 

If the employee doesn't recover from his/her disability, he/she may be awarded compensation for permanent disability. Compensation for temporary disability will then fall away and a new compensation calculation will be made. 
Avoid making the biggest mistake employers make when conducting their incident investigations
If you miss just one point in your incident investigation, COID will deny your compensation claim. 
And worse, if the DoL asks for your report, and you can't give him one, you'll be facing criminal prosecution too.
So don't take chances. Make sure you and your investigation team knows how to properly investigate all accident and incidents at your workplace.

Permanent disability:

An employee who is permanently disabled is one who is permanently unable to perform the work for which he/she was employed for. 

Remember that the amounts paid for permanent disabilities are limited. It's not like hitting the jackpot for an employee!

30% permanent disability or less:

So, if an employee who is permanently disabled has a degree of disability of 30% or less, then a lump sum is paid. 
The formula is: 15 x employee's pay x degree of disability ÷ 30


This lump sum is calculated as being 15 times the employee's earnings. But the monthly earning is capped at R9428. So the lump sum would add up to R141 420 for 30% permanent disability.

If an employee earns less than R2169 per month, then the lump sum will be calculated from the minimum of R2169. So the employee's lump sum will add up to R32 535 for 30% permanent disability.

31% - 100% permanent disability: 

If an employee who is permanently disabled with a degree of disability between 31% - 100%, then the payment will be monthly. 

The formula is: 75% of employee's pay x degree of disability ÷ 100

So, there you have it. A brief rundown of payments for disabled employees as a result of a workplace incident. But there is still a lot to be learned. So click here and learn so much more about incidents in the workplace, including compensation for disability.

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