WorkSafeBC holds average base rate flat in 2027 for 10th consecutive year

Indo-Canadian Voice WorkSafeBC holds average base rate flat in 2027 for 10th consecutive year posted by: Rattan Mall Nearly $1 billion in surplus funds will be returned to B.C. employers in 2027 through discounted rates and assessment credits. Between 2019 and 2027, WorkSafeBC projects that $3.9 billion in surplus funds will have been returned to B.C. employers, primarily through reduced rates. More than half of employers are expected to see either a decrease in [...] The post WorkSafeBC holds average base rate flat in 2027 for 10th consecutive year first appeared on Indo-Canadian Voice . Indo-Canadian Voice

Indo-Canadian Voice WorkSafeBC holds average base rate flat in 2027 for 10th consecutive year posted by: Rattan Mall Nearly $1 billion in surplus funds will be returned to B.C. employers in 2027 through discounted rates and assessment credits. Between 2019 and 2027, WorkSafeBC projects that $3.9 billion in surplus funds will have been returned to B.C. employers, primarily through reduced rates. More than half of employers are expected to see either a decrease in their industry base rate or no change in 2027.

WORKSAFEBC announced on Monday that the preliminary average base rate for 2027 will remain at $1.55 per $100 of assessable payroll. Subject to final approval by WorkSafeBC’s Board of Directors in the fall, this will be the 10 th consecutive year that the average base rate has remained at this level. Surplus funds returned to employers WorkSafeBC’s rate-setting approach includes mechanisms to return surplus funds to employers when the funding level exceeds its target.

In 2027, WorkSafeBC is proposing to return almost $1 billion ($960 million) of surplus funds to employers through discounted rates and assessment credits. Discounted rates: WorkSafeBC is returning an estimated $677 million of surplus funds to employers by pricing base rates below the costs to run the workers’ compensation system. The preliminary average base rate of $1.55 will be 18 per cent less than the projected average cost rate of $1.88 in 2027, with the difference funded by the surplus.

Assessment Credits: WorkSafeBC is also providing $283 million in assessment credits to employer accounts in 2027 in those industry groups with significant surpluses. This credit will apply to approximately 31,000 employers in 15 industry groups. Between 2019 and 2027, WorkSafeBC projects that $3.9 billion of surplus funds will have been returned to employers, primarily through the pricing of base rates below costs.

Changes in 2027 will enhance rate stability While the average base rate will be unchanged in 2027, each year, the costs in some industries go up, some go down and others stay the same. In 2027, more than half (52 per cent) of employers will either see a decrease in their base rate (30 per cent) or no change (22 per cent), while 48 per cent will see an increase. To keep rates as stable as possible, base rate increases and decreases are normally capped at 20 per cent.

However, given the continuing economic uncertainties facing the province, for 2027, WorkSafeBC will restrict base rate increases to a maximum of 15 per cent, while allowing base rate reductions of up to 30 per cent. This temporary approach, which was also used in 2026, is intended to provide greater rate stability for B.C. employers during challenging economic times. WorkSafeBC’s strong financial position has allowed the average base rate to remain flat, despite upward claim-cost pressures — particularly for psychological-injury and chronic-pain claims — and a reduction in the surplus.

Premiums fund the workers’ compensation system The Workers Compensation Act requires WorkSafeBC to set premium rates annually for employers to pay for the workers’ compensation system. The system is structured so that today’s employers are accountable for the full cost of today’s workplace injuries. Premium rate increases and decreases are mainly driven by injury rates, return-to-work performance, and the resulting cost of claims, as well as investment returns.

WorkSafeBC operates a non-profit system funded solely by employer premiums and investment returns. Premiums fund the costs associated with work-related injuries and diseases, health care, wage loss, rehabilitation and administration, including prevention and safety initiatives. WorkSafeBC’s Board of Directors will finalize the 2027 premium rates in October of this year.

Rate information sessions Rate information sessions with stakeholders will take place this summer, with general information sessions scheduled for July 13, 14 and 15. These sessions are an opportunity for WorkSafeBC to provide an update on the financial state of the workers’ compensation system, rate and classification changes, and information on health and safety and return-to-work activities. Further details are posted online at worksafebc.com .

The post WorkSafeBC holds average base rate flat in 2027 for 10th consecutive year first appeared on Indo-Canadian Voice . Indo-Canadian Voice