'Reducing the number of serious injuries and fatalities across the province will help to minimize the impact of factors pushing premium rates upward'
In 2024, two provinces are keeping steady employers’ premium rate payments under their workers’ compensation systems.
Ontario’s average premium rate businesses pay to the Workplace Safety and Insurance Board (WSIB) will remain steady at $1.30 per $100 of insurable payroll next year.
“Under the leadership of Premier [Doug] Ford, the WSIB has cut the average premium rate for safe employers in half, allowing more businesses to reinvest in the economy and their workers,” said David Piccini, minister of labour, immigration, training and skills development. “While keeping rates at a historic 20-year low, our government will continue to bring generational change to the WSIB to deliver better services for the injured workers and businesses who rely on it.”
Ontario is also providing double rebates for small businesses for every topic they complete in the Health and Safety Excellence program, along with an additional $1,000 for implementing a health and safety program.
Aside from keeping the same rate as last year, WSIB provided a 6.5% cost of living increase to people receiving income replacement benefits.
“We were able to hold the line on premium rates in 2024 and will continue to improve our services and results,” said Jeff Lang, president and CEO of the WSIB. “We are also continuing with incentives to small businesses to reduce injuries from happening in the first place.”
The WSIB has reduced premiums by $8.5 billion since 2018, according to the provincial government.
Earlier this year,a workers demanded that WSIB address “unreasonable workloads” as “both the volume and complexity of cases have increased”.
The Saskatchewan Workers Compensation Board (WCB) is also keeping its $1.28 per $100 of payroll rate for 2024.
“The WCB aims to uphold a balance between stable rates and a fully funded compensation system,” said Gord Dobrowolsky, WCB chair. “Claim costs and payroll are the two key drivers of the 2024 average preliminary premium rate. We are forecasting total costs will continue to increase next year, however they are expected to be offset by rising employer payroll. As a result, we are proposing the 2024 average preliminary premium rate to remain at $1.28.”
While the average employer rate will hold steady, industry premium rates for approximately 35% of Saskatchewan’s employers covered by the WCB will increase next year. Meanwhile, industry premium rates for approximately 65% of employers covered by the WCB will see a decrease or no change for 2024.
“While we are not proposing a change to the 2024 average preliminary premium rate, we are expecting long-term upward pressure on premium rates,” said Phillip Germain, WCB CEO. “Reducing the number of serious injuries and fatalities across the province will help to minimize the impact of factors pushing premium rates upward.”
In 2022, 90% of employers in the province achieved zero injuries and zero fatalities. However, on an annual basis, serious injuries account for approximately 10 to 13% of total claims and more than 80% of costs in the system, according to the agency.
Following a comprehensive review, WCB is also renaming funding policy to sufficiency policy.
The name change reflects the focus on ensuring the WCB holds sufficient funds to meet long-term obligations to injured workers and employers, targeting a range between 100 and 140%, said the agency. However, employers will not notice much of a change under the sufficiency policy because the new target range is “intended to maintain stable premium rates under the new accounting standards”.
