OID is the assessment employers pay under the Compensation for Occupational Injuries and Diseases Act (COIDA), funding compensation for employees who are injured, disabled, or who fall ill or die as a result of their work.
What it means
OID is not a payroll deduction in the way PAYE or UIF is - it is an annual liability calculated by the Compensation Fund from the earnings an employer declares, not withheld from any individual employee's pay. In exchange, employees are covered for work-related injury and illness without needing to sue their employer directly.
Where it fits in
The assessment is calculated from the figures declared on the annual Return of Earnings (ROE), combined with an industry risk classification the Compensation Fund assigns to the employer. Paying the resulting assessment, and keeping the ROE filing current, is what keeps an employer's Letter of Good Standing valid.
Key rules
- Funded entirely by the employer - never appears as a deduction on an employee payslip.
- Assessment rate depends on the employer's registered industry classification and claims history.
- Earnings used in the calculation are capped at an annual maximum set by the Compensation Fund.
- A lapsed assessment or overdue ROE invalidates the employer's Letter of Good Standing.
