Ontario government freezes WSIB rate increases for the nonprofit sector
Approach recognizes nature of nonprofits and their role in serving Ontarians
by The Ontario Ministry of Labour
TORONTO, Ont. (Ontario Ministry of Labour) – Workplace insurance rate increases will be frozen for all nonprofits in Ontario, Monte McNaughton, the Minister of Labour, announced today.
The move comes after the Ontario government stepped in and worked with the Workplace Safety & Insurance Board (WSIB) to halt planned increases.
“Every day, nonprofits are there for the people of Ontario,” said Minister McNaughton. “Today, we’re proud to be there for them.”
Without a freeze, nearly 2,700 nonprofits including daycares, legions, charities, women’s shelters and others would have faced increases in their workplace-safety insurance premiums. In the case of Legions, most were facing 300 per cent increases.
“We understand these organizations are run by dedicated people and often operate on shoestring budgets,” said Minister McNaughton. “We get it. That’s why we asked the WSIB to take this measure. Because it’ll help valuable community-based organizations that serve Ontario’s most vulnerable citizens.”
Under a new rate framework announced today, approximately 2,700 non-profits were scheduled to have their rates increased. Their rates will now be frozen for five years.
A further 1,600 will see their rates go down. Those rate decreases will go ahead as planned in January 2020.
Minister McNaughton was joined by Jill Dunlop, Associate Minister for Children and Women’s Issues, at a Toronto YMCA to announce the freeze.
“The nonprofit sector has an overwhelmingly positive impact on Ontario,” said Associate Minister Dunlop. “Today, we’re standing with these important organizations and acknowledging all their hard work and dedication. They deserve relief on an important business cost.”
The freeze was announced on the same day the WSIB introduced its new Premium Rate Framework. The change will result in a 17 per cent reduction on the WSIB’s average premium rate.
Approximately three quarters of employers paying WSIB premiums will see a rate decrease under the new system. These costs are falling while benefits to injured workers are maintained and workplace safety continues to improve.