Compensation fund reports R3bn surplus
Johannesburg - The labour department's compensation fund has reported a surplus of R3.2 billion in the past financial year, fund commissioner Shadrack Mkhonto said on Tuesday
"This is as a result of the increase in the number of companies that are registered with the fund. The number of these companies is currently standing at 420 000," Mkhonto said in a statement.
The fund raised R5.2bn in assessment revenue compared to R4.8bn in the previous financial year, an increase of eight percent.
The accumulated financial standing of the fund was R26.5bn, said Mkhonto.
Five percent of this would go towards investment in job creation projects.
"The compensation fund is the biggest medical aid in the country covering more than 11 million members, most of whom are workers and employers," he said.
The fund, which is financed by levies paid by employers, compensates workers who are injured or suffer from diseases contracted during their employment. It also covers death resulting from such injuries or diseases.
The fund became embroiled in controversy last year when a presentation to Parliament's portfolio committee on labour revealed a R1bn decrease in compensation paid out to injured workers in the 2009/10 financial year.