Workmen’s Compensation (COID)

“What is Workmen’s Compensation (COID)?”

Workmen’s Compensation is a type of government insurance that protects your employees if they get injured, disabled, or become ill because of work-related duties.

It’s managed through the Compensation Fund, and all employers must register and pay annual fees to ensure their workers are covered.

It’s basically like a safety net for your employees, and it’s also a legal requirement for your business.

“Why is Workmen’s Compensation important?”

If an employee gets hurt on the job:

• Their medical expenses will be covered
• They may receive temporary or permanent disability benefits
• If they pass away due to the injury, their dependants can claim compensation

This means you won’t have to pay these costs out of your own pocket, and your staff are protected.

“Who needs to register for Workmen’s Compensation?”

You must register with the Compensation Fund if:

• You have one or more employees, even part-time or temporary
• Your business involves manual labour, machinery, transport, retail, or services
• Your employees could be exposed to any workplace risks

If you’re self-employed and don’t employ anyone, you don’t need to register…

BUT as soon as you hire staff, it becomes a legal requirement.

“How are Workmen’s Compensation fees calculated?”

Workmen’s Compensation is not a fixed fee, it’s calculated based on:

• Your total annual payroll
• The type of work your employees do (risk level)

Each industry has a different risk category. For example:

• Office jobs = low risk = lower fees
• Construction or manufacturing = high risk = higher fees

You submit an annual Return of Earnings (ROE) to determine what you owe.

“What documents do you get for Workmen’s Compensation?”

Once registered and your fees are paid, you’ll receive a:

• Letter of Good Standing: proof that you’re covered and compliant (this is often required for tenders, contracts, or site work)

Govchain can help you register for COID at the Workmans Compensation Fund.