P.E.I. WCB reducing employer rate for 2023 by 4.2 per cent

The Workers Compensation Board (WCB) of Prince Edward Island is reducing the estimated average assessment for employers by 4.2 per cent next year.

That takes the rate to $1.37, down from $1.43 in 2022, it said.

Assessment rates are set annually by the WCB Board of Directors and are calculated per $100 of assessable payroll. As of Jan. 1, 2023, the maximum assessable earnings (MAE) will be $65,000. The MAE is the maximum amount of earnings an employer would pay premiums on per worker.

Based on the funding status as of Dec. 31, 2021, the board of directors also approved a $22 million surplus distribution to employers. The surplus comes as a result of investment returns which fluctuate from year to year. Surplus distribution is considered on a yearly basis by the board.

“The WCB is proud to contribute to the fair compensation of injured workers while balancing financial sustainability for employers,” said Jim MacPhee, Chair of the Workers Compensation Board. “It is with this balance in mind — the needs of workers and employers — that while rates are decreasing, we are also pursuing legislative changes this fall that would enhance benefits for injured workers and their families.”

The rate reduction is made possible by strong investment returns in 2021, growth in the Island’s assessable payroll, a focus on injury prevention and return to work efforts and generally, a funding policy which focuses on sustainability and minimizing volatility, it said.

All Island employers will be advised of their individual assessment rates in December 2022. These rates are based on the cost of claims, the risks of workplace injury in their specific industries and the assessment rates by industry group. For more information on rate assessments by industry groups, visit http://wcb.pe.ca/2023rates