It’s important that we collect enough employer premiums in a year to cover the costs of that year’s workplace illnesses and injuries. This ensures today’s employers pay for the illnesses and injuries that occur today, and don’t pass costs onto future generations of employers.
Setting fair premium rates is critical so we can balance supporting employers who fund the system and ensure the availability of benefits and services for injured workers who rely on it.

How do we set employer premium rates?

We set employer premium rates based on the principles of full funding, collective liability, and individual accountability:

  • Full funding: First we forecast the complete current and future costs of all claims for injuries that we expect will arise in the coming year.
  • Collective liability: Next we look at how different rate groups (i.e., groups of employers doing similar work) have historically fared in terms of their claims experience. This helps determine what portion of total claim costs will come from each rate group.
  • Individual accountability: Finally, the rate group premium is adjusted based on an employer’s actual experience to set a premium rate that reflects the employer’s performance.

Where do your premiums go?

The premiums you pay help fund the workers’ compensation system and protect both employers and workers against the impacts of workplace accidents and injuries.

In 2024, 79% of the premiums we collect go directly toward claim costs, while approximately 15% is allocated to administration expenses. The remaining funds are split between funding important occupational health and safety programs and other system costs.

What do you get for the premiums you pay?

As an employer with an active WCB account, the premiums you pay provide:

  • Guaranteed cost of coverage.
  • Benefits to your workers to replace their lost wages due to workplace injury and illness.
  • Comprehensive medical and rehabilitation services. With no preset limits, these services help your worker recover and return to work.
  • Risk management. Workers’ compensation is the only insurance that offers protection from lawsuits for you and other covered parties.

You also have access to numerous tools and resources to help you manage your business, like seminars, workshops, online and mobile services, and more.

How can you impact the premiums you pay?

Preventing workplace illness and injury is one of the best ways to manage costs. You can help lower your premiums through effective health, safety, and disability management programs.

Return-to-work programs can have a big impact on the premiums you pay. We can help you improve your return to work results. Contact us today.

2024 premium rate information

The average employer premium rate is $1.36 per $100 of assessable earnings [PDF, 0.10MB], however, your individual rate will vary based on your performance and the performance of your rate group. You can look up your rate group’s [PDF, 0.31MB] 2024 premium rate. Your individual rate can be viewed on your experience rating statement.

Our premium rates highlight sheet [PDF, 0.08MB] provides an overview of the factors influencing rates and includes a checklist of steps you can take to improve your own performance.

Resources

More info: WCB Alberta