If approved by board of directors it will mark seven straight years of an unchanged rate
In a move aimed at providing financial stability and predictability for employers, WorkSafeBC has revealed that the preliminary average base rate for 2024 will remain unchanged at 1.55 per cent of employers' assessable payroll. If approved by WorkSafeBC's Board of Directors, this will mark the seventh consecutive year that the average base rate has been kept at this level, reflecting the organization's commitment to maintaining steady rates.
The annual base premium rates are influenced by various factors, including provincial injury rates, return-to-work performance, the cost of claims, and investment returns. By carefully analyzing these variables, WorkSafeBC ensures that the rates are set reasonably, taking into account the financial implications for both employers and the workers' compensation system.
In the upcoming year, different industries in British Columbia will experience varying changes in their base rates. According to projections, 54 per cent of employers are expected to witness a decrease in their industry base rate, while 37 per cent will see an increase, leaving the remaining nine per cent with no change in their rates.
A recent report from the Canadian Federation of Independent Business released a report called Funding Fairness: State of Workers’ Compensation Funding which identifies WorkSafeBC as one of five worker’s compensation boards in Canada that are currently overfunded. It calls on these WCBs to issue direct rebates to businesses.
WorkSafeBC had a funding ratio of 146% in 2022 and says financial prudence has allowed it to maintain the average base premium rate below the average cost of claims. Consequently, the surplus funds have been used to bridge the gap, preventing the need for increased premiums. The projected preliminary average base rate of 1.55 per cent for 2024 will be below the expected cost rate of 1.75 per cent.
Over the last four years, WorkSafeBC anticipates having utilized $1.8 billion of surplus funds to keep employers' rates below the cost of claims. WorkSafeBC says this approach has alleviated financial burdens on businesses while ensuring that the workers' compensation system continues to support injured workers and provide essential healthcare, wage loss, rehabilitation, and administrative services.
To keep employers informed and engaged in the rate-setting process, WorkSafeBC has organized Rate Information Sessions scheduled for July 27 and September 14, 2023. These sessions will be conducted virtually and offer employers the opportunity to receive updates on the financial state of the workers' compensation system, rate and classification changes, and valuable information on how they can influence their rates through improved health and safety practices.
The finalization of the 2024 premium rates will be determined by WorkSafeBC's Board of Directors in November of this year. The organization remains committed to maintaining a fair, stable, and supportive workers' compensation system that benefits both employers and workers alike.
