Organization plans to return $960 million in surplus funds to employers
WorkSafeBC announced Monday that it will hold the average base rate for employer premiums at $1.55 per $100 of assessable payroll in 2027.
This marks a decade of consecutive years without an increase if the proposal receives final approval from the organization's board of directors this fall.
WorkSafeBC also confirmed the organization plans to return approximately $960 million in surplus funds to employers through two separate mechanisms: discounted base rates and direct assessment credits.
How surplus is being returned
The larger of the two streams — an estimated $677 million — flows back to employers through pricing. WorkSafeBC is setting the preliminary average base rate at $1.55, which is 18 per cent below the projected average cost rate of $1.88 for 2027. The gap between what employers actually pay and what it costs to run the system is covered by the surplus.
The remaining $283 million will be distributed as direct assessment credits to employer accounts in 15 industry groups where surpluses are particularly large. WorkSafeBC said roughly 31,000 employers will receive those credits.
The organization noted that between 2019 and 2027, it projects a cumulative $3.9 billion in surplus funds will have been returned to B.C. employers, primarily through the below-cost pricing of base rates.
Rate changes vary by industry
While the average rate is unchanged, individual industry rates will move in both directions. WorkSafeBC said 30 per cent of employers will see a base rate decrease in 2027, 22 per cent will see no change, and 48 per cent will see an increase — meaning just over half of employers will either hold steady or pay less.
To limit volatility, the organization is continuing a temporary cap structure it first introduced in 2026. Base rate increases will be limited to a maximum of 15 per cent — tighter than the standard 20 per cent ceiling — while reductions can go as deep as 30 per cent.
WorkSafeBC said the asymmetric cap is intended to provide greater stability for employers navigating ongoing economic uncertainty in the province.
Cost pressures in B.C
The flat average rate comes despite upward cost pressures WorkSafeBC identified within the system, particularly for psychological injury claims and chronic pain claims, as well as a reduction in the overall surplus. The organization attributed its ability to hold rates steady to its overall financial strength.
WorkSafeBC operates as a non-profit, funded entirely by employer premiums and investment returns, with no government funding. Under the Workers Compensation Act, it is required to set premium rates annually to cover the full cost of workplace injuries incurred in a given year — including health care, wage loss, rehabilitation, administration, and prevention programs.
WorkSafeBC's board of directors is scheduled to finalize 2027 premium rates in October 2026. The organization is also holding a series of rate information sessions for stakeholders this week, with general sessions on July 13, 14 and 15, covering the financial state of the system, rate and classification changes, and health and safety programming.
WorkSafeBC provides no-fault workplace insurance to 2.7 million workers and 286,000 employers across British Columbia.
