(WINNIPEG) – The average WCB assessment rate in Manitoba will drop to $1.25 from $1.30 per $100 of assessable payroll beginning January 1, 2016, maintaining Manitoba's rate as one of the lowest rates in Canada.
The commitment of employers and workers to prevention and recovery goals and the WCB's healthy financial situation made the rate decrease possible.
"The success of prevention and return to work efforts by the WCB, workers and employers are helping to create a competitive business advantage that comes with lower assessment rates," says Winston Maharaj, WCB President and CEO. "Our effective financial stewardship has also contributed to a healthy reserve surplus, allowing us to decrease rates."
The average rate reduction will result in the WCB collecting 9 million dollars less from employers in 2016 than in 2015. Overall, nearly 40 per cent of employers will see a decrease in their assessment rate in 2016.
The average rate reduction will also cushion the impact on employers as the WCB transitions to a new rate model. Transition to the new rate model will be phased in over five years.
In 2016, one of the transitional changes that will be implemented is compressing the risk category range. This range dictates the highest and lowest rate an employer can pay. The compression of the risk category range creates a more collectively pooled and fair and balanced system. However, compressing the range will result in a rate increase for those employers that are at the very bottom of their rate code category range. This increase in rate buys more protection against the potential of the cost of a single claim drastically driving up premiums.
The gradual increase in the maximum assessable earnings cap also continues, with the 2016 ceiling set at $125,000.
The Workers Compensation Board of Manitoba is a mutual workplace injury and disability insurance agency funded by employer premiums. We are here to insure and support safe and healthy work and workplaces. We put workers and employers at the centre of all we do. We provide them with valued services for injury prevention, compensation and return to health and work while maintaining system integrity.
For more information contact:
Email: wcb@wcb.mb.ca