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RICHMOND, B.C. — WorkSafeBC has announced the preliminary average base rate for 2027 will remain at $1.55 per $100 of assessable payroll.

While it is still subject to final approval from the board of directors this fall, this will be the 10th consecutive year the average base rate has remained at this level, explains the organization.

WorkSafeBC’s rate-setting approach includes mechanisms to return surplus funds to employers when the funding level exceeds its target. In 2027, WorkSafeBC is proposing to return almost $1 billion ($960 million) of surplus funds to employers through discounted rates and assessment credits.

WorkSafeBC states it is returning an estimated $677 million of surplus funds to employers by pricing base rates below the costs to run the workers’ compensation system. The preliminary average base rate of $1.55 will be 18 per cent less than the projected average cost rate of $1.88 in 2027, with the difference funded by the surplus.

It is also providing $283 million in assessment credits to employer accounts in 2027 in those industry groups with significant surpluses. This credit will apply to approximately 31,000 employers in 15 industry groups, the release adds.

Between 2019 and 2027, WorkSafeBC projects that $3.9 billion of surplus funds will have been returned to employers, primarily through the pricing of base rates below costs.

While the average base rate will be unchanged in 2027, each year, the costs in some industries go up, some go down and others stay the same. In 2027, more than half (52 per cent) of employers will either see a decrease in their base rate (30 per cent) or no change (22 per cent), while 48 per cent will see an increase.

Given the continuing economic uncertainties facing the province, for 2027, WorkSafeBC says it will restrict base rate increases to a maximum of 15 per cent, while allowing base rate reductions of up to 30 per cent. This temporary approach, which was also used in 2026, is intended to provide greater rate stability for B.C. employers.

The Workers Compensation Act requires WorkSafeBC to set premium rates annually for employers to pay for the workers’ compensation system.

Premium rate increases and decreases are mainly driven by injury rates, return-to-work performance and the resulting cost of claims as well as investment returns, the release notes.

Premiums fund the costs associated with work-related injuries and diseases, health care, wage loss, rehabilitation and administration, including prevention and safety initiatives.

WorkSafeBC’s board of directors will finalize the 2027 premium rates in October of this year.