Question NW38 to the Minister of Labour
07 March 2019 - NW38
Moteka, Mr PG to ask the Minister of Labour
(1) Why is a certain person paid a monthly salary instead of a lump sum since he has been employed; (2) whether the director-general has considered the specified persons request; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
(1) In terms of the manner of calculation of benefits as per the Compensation for Occupational Injuries & Diseases Act (Act), pensions are paid to all persons with a disability of 31% - 100% permanent disablement. The person in question was assessed to have a permanent disablement of 45% and qualified for a monthly pension paid to permanently disabled beneficiaries.
(2) In terms of the Act, the Director General prescribes the maximum amount that can be paid in lieu of a portion of the pension.
The current prescribed maximum is R 800.00 paid in lieu of the of the pension amount per month, which is referred to as commutation of the pension. This means that a portion of the monthly pension is paid as an advance, and future pensions are paid less the advanced amount.
The person applied for commutations as part of his monthly pension and it was approved on
(i) 04 August 2018 the person was paid an amount R74 718. An amount R400.00 was set off against his monthly pension
(ii) 02 August 2010 the person was paid an amount of R72 366. Further amount of R400.00 was set off against his monthly pension. A total amount of R800 was deducted from his monthly pension and currently receiving a monthly pension R 1764.08.