WorkSafeBC has announced that its preliminary average base premium rate for 2027 will remain at $1.55 per $100 of assessable payroll, marking the tenth consecutive year the average rate has been maintained at the same level.
The rate is still subject to final approval by WorkSafeBC’s Board of Directors later this fall.
As part of its rate-setting approach, WorkSafeBC plans to return approximately $960 million in surplus funds to employers during 2027 through a combination of discounted premium rates and assessment credits.
According to the organization, about $677 million of the surplus will be returned by setting premium rates below the actual projected cost of operating British Columbia’s workers’ compensation system.
While the projected average cost rate for 2027 is $1.88 per $100 of assessable payroll, employers will pay the lower average base rate of $1.55, with the difference covered by accumulated surplus funds.
In addition, WorkSafeBC plans to distribute $283 million in assessment credits to employers operating in industry groups with significant funding surpluses.
Approximately 31,000 employers across 15 industry groups are expected to receive these assessment credits.
Between 2019 and 2027, WorkSafeBC estimates it will have returned approximately $3.9 billion in surplus funds to employers, primarily by maintaining premium rates below the system’s actual operating costs.
The overall average rate will be unaffected but individual employer rates may vary depending on how the industry performs and what claims experience looks like.
WorkSafeBC expects 52% of employers to see their base rate decrease (30%) or stay the same (22%) in 2027. The other 48% will see an increase in their premiums.
WorkSafeBC will continue its temporary rate adjustment policy introduced in 2026 to help provide greater financial stability during ongoing economic uncertainty.
Under this approach, individual employer premium rate increases will be capped at 15%, while reductions of up to 30% will be permitted.
WorkSafeBC explained that this measure is intended to reduce significant year-to-year fluctuations in employer premiums while maintaining the long-term financial sustainability of the workers’ compensation system.
Under the Workers Compensation Act, WorkSafeBC must annually set employer premium rates to fund the province’s workers’ compensation program.
The main factors influencing premiums are injury rates at the workplace, return to work results, claims costs and investment performance.
Premiums collected are used to provide compensation for injuries and occupational diseases related to employment, including health care, wage replacement benefits, rehabilitation services, workplace safety and system administration.
WorkSafeBC’s Board of Directors is expected to approve the final 2027 premium rates in October.
