2016 Premium rates drop
Ninth straight year
Due to improved safety performance
Improved safety performance records in 45 of 50 industry rate codes will result in lower premium rates in 2016 for 45,683 of Saskatchewan’s 47,783 employers.
Lowest proposed average premium rate in 30 years (since 1986)
Overall provincial injury rate continues to fall
Today, the Saskatchewan Workers’ Compensation Board (WCB) proposed an 8.2 percent drop to its 2016 average premium rate, from $1.46 to $1.34 per hundred dollars of payroll. The announcement was made today in Regina at a WCB Rate Setting consultation with Saskatchewan business leaders.
The 2016 rate reduction is the ninth straight drop to the average premium rate and the lowest rate in thirty years. Saskatchewan’s preliminary 2016 average employer premium is 34.6 percent below the thirteen year high of $2.05 in 2004. The 2016 rate proposal means that Saskatchewan could have the fourth lowest average premium rate in Canada next year.
WCB Chairperson, Gordon Dobrowolsky said, “The proposed rate reduction is good news for business owners and workers. We continuously strive to maintain a balance between stable rates and a fully funded compensation system.” Improved safety performance records in 45 of 50 industry rate codes are expected to result in lower 2016 premium rates for 45,683 of Saskatchewan’s 47,783 employers.
With the 2016 rate proposal:
Premium rates for ninety-six percent of Saskatchewan employers in 45 industry rate codes will drop. The decreases range from 0.6 to 18.1 percent. The average decrease is 7.8 percent. There will be no change in premium rate for employers in one industry rate code.
Premium rates for four industry rate codes will increase next year. This represents 4.2 percent of registered employers. Of the increases, only one industry rate code will be over 10.5 percent. The average increase is 7.2 percent.
WCB’s CEO Peter Federko said, “Our rates continue to improve because of decreased injury rates and an increase in return-to-work programs. This ninth straight premium rate reduction demonstrates the direct impact of injury prevention by Saskatchewan employers and workers. Employers and workers are committing to making workplaces safer. It’s having a steady positive effect on the injury rate.”
The 2016 rate proposal is being presented to business leaders at two public meetings: one in Regina and one in Saskatoon. For the second year, the rate setting consultation meeting is being streamed live via webcast for stakeholders unable to attend in person. Information presented at both consultation meetings will be made available on the WCB website.
Background – Rate setting
The proposed Saskatchewan WCB average employer premium rate for 2016, $1.34, is down 8.2% from the 2015 rate of $1.46.
By proposing to lower the 2016 average premium rate, the WCB is recognizing the improving safety performance in the province.
Saskatchewan WCB expects average employer premium ($1.34) will be the 4th lowest in Canada for 2016 – the lowest in thirty years.
Total # of employers in Saskatchewan – There are 47,783 employers in Saskatchewan.
There are 50 industry rate codes in Saskatchewan.
Safety records directly impact premiums
Better safety performance records in 45 industry rate codes result in lower 2016 premium rates for 45,683 employers. The decreases range from 0.6% to 18.1%. The average decrease is 7.8%.
Worsening safety performance records in four industry rate codes result in higher 2016 premium rates for 2,026 employers. The average increase is 7.2%. Premium rate increases range from 1.9% to 17.8%. Generally, premium rate increases reflect higher costs in industry rate codes.
Under the WCB Experience Rating program, employers with above-par safety records earn premium discounts; poor performers pay a surcharge.