MAY 2025 – SOUTH AFRICA
MANNER OF CALCULATING COID ROE EARNINGS
It is important that employers note the following:
Guidance on calculating earnings for the purpose of the Return of Earnings (ROE)
On 25 April 2025, Government Gazette No. 52558 Notice No. 6141 was published by the Minister of Employment and Labour to provide guidance to employers on calculating earnings for the purpose of the ROE.
The ROE is an annual declaration that South African employers must submit to the Compensation Fund, detailing employees’ actual earnings for the previous year and projected earnings for the current year.
The notice serves as guidance only and does not constitute a change in legislation. For ease of reference, the previous explanation of earnings is compared with the new guidance in the table below.
In addition, the notice provides guidance on the earnings to be included when calculating compensation benefits. These earnings align with those required for the ROE declaration.
Income excluded (or exempt) from the calculation of compensation benefits includes:
- Allowances of an intermittent nature;
- Payments for non-recurring or occasional services;
- Reimbursements or amounts paid to cover special expenses such as travel costs.
To view the notice, follow the link.
