COIDA Earnings Cap 2026/2027: R668,000 Threshold Explained
Quick Answer: What is the COIDA earnings cap for 2026?
The COIDA earnings cap is R668,000 per employee per year, effective 1 March 2026 (up from R633,168). Earnings above the cap are excluded from your Return of Earnings assessment. The minimum annual assessment stays R1,621 for employers and R560 for domestic employers.
What Is the COIDA Earnings Cap?
The COIDA earnings cap is the maximum amount of annual earnings per employee that the Compensation Fund may use when calculating your employer assessment. It is set under section 83(8) of the Compensation for Occupational Injuries and Diseases Act 130 of 1993 and adjusted every year by the Minister of Employment and Labour.
If a director or senior employee earns R900,000 a year, only R668,000 of that salary counts toward your 2026/2027 assessment. The balance is simply ignored in the calculation – it does not disappear, it is just not assessable.
The Two Caps You Use on the 2026 Return of Earnings
Your Return of Earnings (ROE) declares two periods, and each period has its own cap. Mixing them up is the single most common ROE error:
| ROE field | Period | Cap per employee |
|---|---|---|
| Actual earnings | 1 March 2025 – 28 February 2026 | R633,168 |
| Provisional earnings | 1 March 2026 – 28 February 2027 | R668,000 |
Worked example: an employee earning R60,000 a month grosses R720,000 a year. For the actual period you declare R633,168; for the provisional period you declare R668,000 – never the full R720,000.
Minimum Assessments Still Apply
Even a tiny payroll never pays less than the minimum assessment, which is R1,621 per year for standard employers and R560 per year for domestic employers (households employing a domestic worker, gardener or nanny). Both figures were confirmed in Government Gazette 54577 (Notice 3910 of 2026) and took effect on 1 March 2026.
Who and What the Cap Applies To
- Working directors and members who draw a salary are subject to the same per-person cap, reported in their own ROE line.
- Bonuses and lump sums should be annualised across the months they relate to before capping, so you do not overstate a single month.
- Casual and part-time workers count toward your earnings total; only their earnings above the cap are excluded.
- Employers in the mining and metals classes administer COIDA through Rand Mutual Assurance (RMA), and construction employers may fall under FEM – the same earnings-cap principle applies when those licensees raise their assessments.
Common Cap Mistakes That Trigger Penalties
- Applying the new R668,000 cap to the closed actual-earnings period (it must be R633,168).
- Forgetting working directors in the earnings total.
- Declaring full bonuses in the month paid instead of annualising.
- Using the wrong industry tariff – see our guide to COIDA industry classes and tariffs.
Late or incorrect ROEs attract an automatic 10% penalty, plus interest on unpaid assessments. Estimate your figure first with our COIDA assessment fee calculator.
Frequently Asked Questions
What is the COIDA earnings cap for 2026/2027?
R668,000 per employee per year, effective 1 March 2026 for the 2026/2027 assessment year. The previous cap of R633,168 still applies to actual earnings for 1 March 2025 – 28 February 2026.
Does the earnings cap apply to company directors?
Yes. Working directors and members who draw a salary are subject to the same R668,000 cap, reported separately on the Return of Earnings.
What is the minimum COIDA assessment in 2026?
R1,621 per year for standard employers and R560 per year for domestic employers, both effective 1 March 2026.
What happens if I use the wrong cap on my ROE?
The Compensation Fund can reassess you, demand back payments and add administrative penalties. Always separate actual earnings (R633,168 cap) from provisional earnings (R668,000 cap).
Do RMA and FEM apply the same earnings cap?
Yes. Rand Mutual Assurance (mining and metals) and FEM (construction) raise COIDA-equivalent assessments on the same gazetted earnings thresholds.
Related COIDA Guides
- COIDA Assessment Fee Calculator
- Return of Earnings Submission Guide
- Actual vs Provisional Earnings
- Minimum Assessment Fees
- Industry Classes and Tariff Rates
- ROE Penalties and Interest
Official Resources
- COIDA Act 130 of 1993 (full text, gov.za)
- CFOnline – ROE submission portal
- Department of Employment and Labour
- Rand Mutual Assurance (mining and metals employers)
Skip the Queue
Want your ROE calculated and filed correctly the first time? AdminBoss handles COIDA Return of Earnings submissions for South African employers. File your ROE with AdminBoss →
Last reviewed: 1 September 2026 against Department of Employment and Labour and Compensation Fund sources. COIDASA is a division of AdminBoss – South African employer compliance specialists.
