The following is the News flash 2023-16 published by the PAGSA on April 15, 2023
regarding the COID Earnings Threshold for 2023 (correction)

COMPENSATION FUND EARNINGS THRESHOLD FOR 2023/24

Towards the end of January 2023 the PAGSA contacted the Compensation Fund authorities to inform them that the COID Earnings Threshold for the 2023/2024 year of assessment that payrolls must implement in their systems from 1 March 2023 had not yet been published and to request that it be published urgently.

Gazette No. 48065 Published 17 February 2023

Gazette No. 48065 was then published on 17 February 2023 (signed on 13 Feb 2023 by the Director-General of the Department of Employment and Labour). This Gazette (Gazette No. 48065)
specified the COID Earnings Threshold for the 2022/23 year of assessment as well as the COID Earnings Threshold for the coming 2023/24 year of assessment, as follows:

“DEPARTMENT OF EMPLOYMENT AND LABOUR
NOTICE 1616 OF 2023

COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT, 1993 (ACT NO 130 OF 1993)

THE NOTICE ISSUED BY THE DIRECTOR-GENERAL UNDER COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT, 1993

I, ThobiIe Lamati, The Director General of Employment and Labour, hereby in terms of S83 (8) and S83 (2) (b) of the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No 130 of 1993) as amended issue the following Notice:

a) The submission of the Return of Earnings (ROE) by employers for the 2022 Assessment Period (Financial Year 2022/2023) would be open from 1 April 2023 to 31 May 2023
b) A penalty of 10% would be charged for the late submission of the ROEs after the prescribed deadline.
c) An interest as prescribed by the National Treasury would be charged on the overdue account or payment made after 30 days of the invoice date.
d) It is the employer’s responsibility to notify the Compensation Fund of any change in particulars, such as a business ceasing to exist, a change in the nature of the business, a change in the physical address of the business, a change in a business’ email address, and so on, within 7 days.”

The two COID Earnings Threshold specified in this Gazette (Gazette No. 48065) were published in PAGSA Newsflash 2023-05 on 17 February 2023 as follows:
1. R 529 264 for 1 March 2022 to 28 February 2023
2. R 563 520 for 1 March 2023 to 28 February 2024.

Gazette No. 48187 Published 10 March 2023

On 10 March 2023, Gazette No. 48187 was published (signed on 13 Feb 2023 by the Minister of Employment and Labour) containing a notice that listed the “Increase in Monthly Pensions” over several pages. These are benefit payouts and are not of importance for payroll systems.

Sometime later, to everyone’s surprise, one of our PAGSA members pointed out that new COID Earnings Threshold were specified after the listing on the Monthly Pension Increases at the end of the Gazette (Gazette No. 48187 ).
The COID Earnings Threshold for 2023/24 specified in this Gazette (Gazette No. 48187 ) is R568 959 (specified in the previous Gazette (Gazette No. 48065) as R563 520).

This resulted in an exchange of emails between the PAGSA, the Fund, and the Department of Employment and Labour to determine:
1. Why two Gazettes were published with different earnings thresholds
2. Which of the two earnings threshold is the correct one for 2023/24.
The first question won’t be answered, but it has now been confirmed that the earnings threshold specified in the second Gazette No. 48187 is the correct one and must be used for 2023/24.

To confirm, the two earnings thresholds that must be applied in payroll systems are:
1. R 529 264 for 1 March 2022 to 28 February 2023
2. R 568 959 for 1 March 2023 to 28 February 2024.