Understanding Return of Earnings (ROE) Submissions for 2025

A Complete Guide to Return of Earnings (ROE) Submissions in 2025

Prepared by : SAPAC Reporter
Article Classification: Legal Compliance information
Image courtesy: SAPAC 

 

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South African Businesses 

For South African businesses, adhering to the Return of Earnings (ROE) submission requirements set by the Compensation for Occupational Injuries and Diseases Act (COIDA) is crucial. Timely and accurate submissions ensure compliance, protect employees, and help businesses obtain a Letter of Good Standing. SAPAC South African assists employers in successfully filing their ROE ensuring compliance and peace of mind.

In this guide, we’ll cover what you need to know about COIDA ROE, including its significance, the latest earnings thresholds, step-by-step filing instructions, and how SAPAC can assist you in the process.

What is Return on Earnings (ROE)?

Every employer in South Africa must submit a Return of Earnings (ROE) to the Workman’s Compensation Fund annually. This document reports all employee wages for the assessment period, which operates one year behind—meaning the 2023 ROE submission covers earnings from March 2023 to February 2024.

The submission period is from April to June each year, and compliance is essential to obtaining a Letter of Good Standing. Businesses that fail to submit their ROE or pay their assessments on time risk financial penalties and legal consequences.

Why is ROE Submission Important?

Filing the ROE is crucial because:

• Employees cannot claim compensation from the Compensation Fund without an up-to-date submission.

• A Letter of Good Standing is only issued once the ROE is submitted and paid.

• It is a legal requirement under COIDA.

• It demonstrates an employer’s commitment to workplace safety and employee well-being. It address legal compliance issues for the employer. 

ROE Submission Dates for 2025

Although the official 2025 deadlines have not yet been announced, based on previous years, businesses should prepare for the following:

• ROE Submission Deadline: Expected between 1 April and 30 June 2025.

• Assessment Payment Due Date: Typically, 30 days from the date of the assessment notice.

• Business Information Updates: Any changes in business details must be reported within seven days to the Compensation Fund.

ROE Earnings Thresholds for 2025

The Compensation Fund sets annual earnings thresholds to calculate employer assessments. These thresholds ensure fair contributions from businesses across various industries.

Example of ROE Calculation

To correctly determine ROE, businesses must calculate:

• Earnings Cap: If an employee earns over R597,328, only that amount is used in calculations.

• Assessment Rate: Determined by industry risk classification (e.g., Security Industry: 2% of payroll).

• Late Payments & Penalties: Incorrect or late submissions may lead to penalties and interest fees.

How to Submit Your ROE Online

Step 1: Visit the Department of Employment and Labour’s ROE portal.

Step 2: Register or log in. First-time users must provide:

• Company tax number

• Director ID

• Organization type (Pty, NPO, Trust, etc.)

Step 3: Upload required documents and complete business details, including:

• Industry classification

• Number of employees

• Total annual earnings

Step 4: Navigate to “ROE Menu” > “Submit Return of Earnings”.

Step 5: Enter wage details accurately and verify all information.

Step 6: Review and submit your ROE.

Step 7: Keep proof of submission for your records.

Consequences of Late ROE Submission

Failure to submit and pay ROE on time can result in:

• Penalties & Interest: 10% late fee plus additional interest charges.

• Loss of Letter of Good Standing: Essential for government contracts and business credibility.

• Legal Action: The Department of Employment and Labour may impose fines or compliance orders.

• Denied Employee Claims: If an ROE is outdated, worker compensation claims may be delayed or rejected, leading to employer liability for medical expenses.

How SAPAC South African Professionals and Contractors Can Assist

Navigating COIDA and ROE compliance can be challenging, especially for new businesses. SAPAC offers expert assistance in:

• Hassle-Free ROE Submission: Ensuring correct, timely filing to avoid penalties.

• Letter of Good Standing Assistance: Expedited processing for contract and bid requirements.

• COIDA Registration & Compliance: Quick and efficient company registration and compliance setup.

• Expert COIDA Consultation: Stay informed with the latest regulation updates.

• Free ROE Calculator: Accurately estimate your submission to prevent miscalculations.

Final Thoughts

Staying compliant with COIDA and submitting your ROE for 2025 is crucial for business continuity, worker protection, and legal standing. Employers should familiarize themselves with submission deadlines, earning thresholds, and the correct filing process to avoid penalties and compliance issues.

For further assistance, explore our other articles

Steps to filing a Workers Compensation Claim 

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