Permanent disability means that an employee never fully recovers from the injury or sickness. A permanent disability can completely prevent an employee from working, or it can just inconvenience an employee. Most serious is called 100% disability, and least serious is called 1% disability. A doctor must write a medical report about the disability. The Commissioner, with the help of a panel of doctors, works out the degree of disability. The degrees of disability are set out in Schedule 2 of the

Compensation for occupational Injuries and Diseases Act. Some examples are:

Compensation for permanent disability is paid either as a monthly pension or as a lump sum:

• if the injury is measured as more than 30%, the employee gets a pension
• if the injury is 30% or less, the employee gets a lump sum The formula for the monthly pension is:

[monthly wage x (75 ÷ 100)] x (percentage disability ÷ 100)

This amount will be paid once a month for the rest of the employee’s life.

Example:
Joe lost one of his hands while pushing some poles through a saw. At the time of his accident he was earning R2 500 per month. The percentage disability for loss of a hand is 50%.

monthly wage x (75 ÷ 100) x (percentage disability ÷ 100) R2 500 x (75 ÷ 100) x (50 ÷ 100)

R1 875 x (50 ÷ 100) = R937.50

Joe will get R937.50 per month for the rest of his life.

The formula for the lump sum is:

(monthly wage x 15) x (percentage disability ÷ 100)

This amount will be paid once only and there will be no further payments.

Example:
Freddie lost an eye while working in a factory. Before the accident he got R3 000 a month. What compensation should he get for his permanent disability? The percentage disability for the loss of one eye is 30%. Freddie will get a lump sum because his injury was 30% or less. To work out the lump sum:
(Monthly wage x 15) x (percentage disability ÷ 100)

(R3 000 x 15) x (30 ÷ 100)

R45 000 x (30 ÷ 100) = R135 000

Freddie will receive R135 000 as a lump sum payment