July 14, 2025
RED FM News Desk
In a move set to provide significant relief to businesses across the province, WorkSafeBC announced today that the preliminary average base premium rate for employers will remain unchanged at $1.55 per $100 of assessable payroll for 2026. This marks the ninth consecutive year the average base rate has held steady, a decision largely fueled by the agency’s robust financial health.
The stability in rates is made possible by approximately $570 million in surplus funds that will be returned to B.C. employers next year. This return is achieved by keeping premium rates stable and notably below the actual costs required to run the workers’ compensation system.
Surplus Funds Bolster Employer Savings and Worker Benefits
WorkSafeBC’s strong financial standing, bolstered by higher-than-required investment returns, has enabled the agency to channel these surplus funds back to employers while simultaneously enhancing benefits for injured workers. The organization’s rate-setting approach is designed to return surplus funds to employers when its funding level surpasses its target.
Looking at the broader picture, WorkSafeBC projects that between 2019 and 2026, a staggering $3 billion in surplus funds will have been returned to employers. This has been accomplished by intentionally pricing premium rates below the true cost of operating the workers’ compensation system. Without the benefit of this surplus, the average premium rate would otherwise need to increase to match the average cost rate, potentially burdening businesses. The preliminary average premium rate of $1.55 is a full 15 percent less than the projected average cost rate of $1.83, with the difference entirely covered by the surplus.
Enhanced Rate Stability Amid Economic Uncertainty
While the overall average base rate remains unchanged for 2026, the cost dynamics within individual industries naturally fluctuate. For 2026, it’s projected that 39 percent of B.C. employers will see a decrease in their industry base rate, 47 percent will experience an increase, and 14 percent will see no change.
Recognizing the ongoing economic uncertainties facing British Columbia, WorkSafeBC has implemented significant adjustments to the maximum increases and decreases in 2026 rates for B.C. industries. Historically, these caps have been set at 20 percent. However, for 2026, rate increases will be capped at 10 percent, while rate decreases will be permitted to reach up to approximately 40 percent. This strategic change aims to provide greater rate stability for B.C. employers during these challenging economic times.
Funding the Workers’ Compensation System
The Workers Compensation Act mandates WorkSafeBC to annually set premium rates that employers pay to fund the workers’ compensation system. This system is designed on the principle that today’s employers are responsible for the full cost of today’s workplace injuries.
Annual base premium rates are determined by several factors, including provincial injury rates, the effectiveness of return-to-work programs, the resulting cost of claims, and the performance of investments relative to required rates of return.
It’s important to note that WorkSafeBC operates as a not-for-profit system, funded exclusively by employer premiums and investment returns. These premiums cover all costs associated with work-related injuries and diseases, including health care, wage loss, rehabilitation, and administrative expenses, which encompass vital prevention and safety initiatives.
WorkSafeBC’s Board of Directors will grant final approval for the 2026 premium rates in November of this year.
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