WorkSafeBC Announces Flat Base Rate for 2027, Returning Nearly $1 Billion to Employers

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WorkSafeBC has announced that the average base rate for 2027 will remain at $1.55 per $100 of payroll, marking the 10th consecutive year at this level. The organization plans to return nearly $1 billion in surplus funds to employers.

RICHMOND, B.C. — WorkSafeBC has revealed that the preliminary average base rate for the year 2027 is set to remain at $1.55 per $100 of assessable payroll. While this figure awaits final approval from the board of directors in the fall, it will mark the tenth consecutive year that the average base rate holds steady at this level, according to the organization’s announcement. WorkSafeBC's methodology for rate-setting incorporates mechanisms designed to return surplus funds to employers when the funding level exceeds its established target. In 2027, WorkSafeBC proposes to return nearly $1 billion, specifically $960 million, to employers through a combination of discounted rates and assessment credits. The organization notes that it is returning an estimated $677 million of surplus funds to employers by setting base rates below the operational costs required to maintain the workers’ compensation system. This preliminary average base rate of $1.55 represents an 18 percent reduction compared to the projected average cost rate of $1.88 for 2027, with the surplus funding covering the difference. Moreover, WorkSafeBC plans to allocate $283 million in assessment credits to employer accounts in 2027 for those industry groups that exhibit significant surpluses. This credit initiative is expected to benefit around 31,000 employers across 15 different industry groups. Between 2019 and 2027, WorkSafeBC anticipates returning a total of $3.9 billion in surplus funds to employers, primarily achieved through the strategy of pricing base rates below the actual costs. While the average base rate will remain unchanged for 2027, the costs associated with different industries will vary; some will see increases, while others will experience decreases or remain stable. Specifically, in 2027, more than half (52 percent) of employers will either experience a decrease in their base rate (30 percent) or no change at all (22 percent), whereas 48 percent will face an increase. Given the ongoing economic uncertainties in the province, WorkSafeBC has decided to limit any base rate increases to a maximum of 15 percent, while permitting reductions of up to 30 percent. This temporary strategy, which was also implemented in 2026, aims to provide enhanced rate stability for employers in British Columbia. The Workers Compensation Act mandates that WorkSafeBC must establish premium rates annually for employers to fund the workers’ compensation system. The adjustments to premium rates are primarily influenced by injury rates, return-to-work performance, the associated costs of claims, and investment returns, as detailed in the release. Premiums are essential for covering expenses related to work-related injuries and diseases, including healthcare, wage loss, rehabilitation, and administrative costs, which also encompass prevention and safety initiatives. The finalization of the premium rates for 2027 will occur in October of this year, following the board of directors' review.

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