The what, why and how of Workman’s Compensation

Frequently Asked Questions and Answers about Workman’s Compensation


What is Workman’s Compensation?

It is a compulsory insurance paid annually. It is calculated on a scale of risk associated with your specific industry and employee earnings. Earnings are capped at a specific amount for employees and directors every year. Amount payable is also linked to claims made for accidents in prior years.

Why pay Workman’s Compensation?

Workman’s Compensation is a labour department safeguard for employees and employers. Workman’s compensation will provide for employees or their dependents in case of death or disablement caused by occupational death or disease.

Workman’s compensation is a medical benefit as well as wage replacement.

When is payment due?

Submission of information is due by the end of April every year, with payment due on assessment. Over the past few years this date has been extended to the end of May.

How does the insurance get paid out?

Compensation is payable to employees who are unable to work for three or more days due to an injury or disease at a rate of 75% of his wage / salary.

Compensation where the degree of injury is 30% disablement or less will result in a lump sum payment to the injured employee.

Compensation where the degree of injury is more than 30% disablement employee will receive monthly payments.

All reasonable medical bills will be covered by the workman’s compensation insurance fund including transport to the hospital.

If the employee dies, beneficiaries will be entitled to twice the employees’ monthly salary in a lump sum pay-out.


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