Premium rates and how they're set

What are premiums?

Premiums are the funds needed to cover the cost of WCB benefits and services that are collected from registered employers. Employers’ premiums go into an injury fund, which goes toward:

• Providing earnings loss benefits to workers injured on the job who are unable to work as a result of their injury;
• Providing medical aid and rehabilitation to workers injured on the job; and
• The general administration of the WCB, which includes costs to run the compensation system, adjudicating claims and developing prevention and safety initiatives.

How are premium rates set?

Workers’ compensation is a no-fault insurance system based on collective liability, where all employers share liability for workplace injury insurance. Employers are grouped together to form an industry rate code. Premium rates are set for each rate code based on the collective claims experience of employers within each industry rate code. All employers within an industry rate code start with the same industry premium rate. 

Premium rates are determined using two key components: claims costs and payroll.

Claims costs are affected by an employer’s injury rate and duration. The costs associated with workplace injuries that have occurred in the past help us project what future claims costs will be.

Payroll is the second component that factors into the determination of premium rate calculation. Payroll is collected for all workers in all industries subject to coverage under The Saskatchewan Workers’ Compensation Act, 2013 up to the maximum assessable amount per worker.

The rate setting process ensures today’s employers pay for the costs related to today’s claims. Premiums collected in a rate year cover the lifetime costs associated with the claims that happen in that year.

• An actuarial rate model is used to determine annual industry premium rates
• The model projects expected claims costs for upcoming year
• Industry premium rate = costs/payroll

2024 premium rates