WorkSafeBC’s preliminary average premium base rate to remain unchanged
WorkSafeBC announced today that the preliminary average base rate for 2022 will remain unchanged at 1.55 per cent of employers’ assessable payroll. This will be the fifth year in a row that the average base rate has remained at this level, consistent with WorkSafeBC’s goal of keeping rates stable.
Annual base premium rates are driven by injury rates, return-to-work performance and the resulting cost of claims, as well as investment performance relative to required rates of return.
Each year, the costs in some rate groups go up, some go down and others stay the same. In 2022, 60 per cent of employers in B.C. are projected to experience a decrease in their industry base rate, 23 per cent will see their industry base rate increase, and 17 per cent will see no change.
WorkSafeBC’s strong financial position in recent years has allowed the average base premium rate to be discounted below the average cost of claims, with the difference funded from higher-than-required investment returns. The preliminary average base rate of 1.55 per cent for 2022 will be less than the expected cost rate of 1.76 per cent.
Consultations with stakeholders will take place in July, with general information sessions scheduled virtually on July 19 and 21. These consultations 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 Workers Compensation Act requires WorkSafeBC to set premium rates annually for employers in order to pay for the workers’ compensation system.