Regina, Sask., Oct. 31, 2024 – The Saskatchewan Workers’ Compensation Board (WCB) announced the 2025 preliminary average employer premium rate will remain unchanged from the 2024 rate at $1.28 per hundred dollars of payroll. The announcement was made at the WCB’s annual preliminary rate information meeting with Saskatchewan employers, workers, and stakeholders on Oct. 31.
“Year over year, the WCB aims to uphold a balance between stable rates and a fully funded compensation system,” said the WCB’s chair, Gord Dobrowolsky. “The two key drivers of the 2025 preliminary average premium rate are claim costs and payroll. While we are forecasting claim costs to increase, we expect these to be offset by rising employer payroll. This is why we are proposing the 2025 preliminary average premium rate remain at $1.28.”
Workers’ compensation is a no-fault insurance system based on collective liability, where all employers share responsibility 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.
With the 2025 preliminary rate proposal:
- The overall 2025 proposed average preliminary premium rate will remain at $1.28 per hundred dollars of payroll.
- Industry premium rates for approximately 76 per cent of Saskatchewan’s employers covered by the WCB will see a decrease or no change for 2025.
- Industry premium rates for approximately 24 per cent of Saskatchewan’s employers covered by the WCB will increase next year.
The WCB works to uphold a balance between stable rates that ensure fairness, transparency, collective liability and predictability, and a fully funded compensation system.
“While we are proposing the 2025 preliminary average premium rate remain consistent with last year’s rate, we are seeing claims getting more costly, which coupled with inflation, is expected to put long-term upward pressure on premium rates,” said the WCB’s CEO, Phillip Germain. “By working together to reduce the number of serious injuries and fatalities in our province, we can help to minimize the impact of factors that are pushing premium rates upward.”
In 2024, the WCB completed an optimization of its investment strategy to improve the long-term expected return on its investments. Increased investment income benefits employers by reducing the premiums needed to operate the compensation system.
Additionally, employers can influence their individual premium rate through effective injury prevention and return-to-work programs. The degree to which employers in an industry work to eliminate workplace injuries also affects industry premium rates. Employers who have a fully functioning safety program and a solid return-to-work program can help prevent and manage work-related injuries.
In 2023, for the fourth year in a row, 90 per cent of employers in the province achieved zero injuries and zero fatalities in their workplaces. On an annual basis, serious injuries account for approximately 11 to 14 per cent of total claims and more than 80 per cent of claim costs in the system.
Over the coming months, WorkSafe Saskatchewan, the partnership between the WCB and the Ministry of Labour Relations and Workplace Safety, will launch several programs designed to support employers and workers in making Saskatchewan the safest place in Canada to work. As part of its 2023-2028 Fatalities and Serious Injuries Strategy, these programs include several campaigns targeting rate codes with the highest injury rates.
“The WCB will continue to work to prevent work disability through active worker and employer contact, and collaborative return-to-work plans with workers, employers and health-care providers,” said Germain. “Through all of these efforts, we can work together to reduce the number of serious injuries and fatalities that significantly impact individuals, families and communities.”