Workers’ compensation rate lowered for first time in a generation, with Nova Scotia employers set to benefit from reduced costs and expanded worker benefits
Nova Scotia’s Workers’ Compensation Board reduces the average employer assessment rate to $2.25 per $100 of assessable payroll, a 15 per cent decrease that the board describes as the first rate cut in a generation.
Workers' Compensation Board (WCB) of Nova Scotia shared the reduction will return an estimated $75 million to the provincial economy by lowering costs for employers. The change comes alongside benefit improvements for injured workers. Beginning in 2027, benefits will be indexed to the full cost of living rather than half, following amendments made in 2025 to the Workers’ Compensation Act.
How the rate cut was made possible
Saeed El-Darahali, board chair of the Workers' Compensation Board of Nova Scotia, expressed support for the board’s improved financial position, with rate cuts intended to benefit both workers and employers. He said workers will start to receive increased benefits while employers will begin to see workers’ compensation costs fall.
The board said the rate reduction was made possible by financial management, a workplace injury rate that has declined steadily over the past 20 years, and an increase in the number of workers staying connected to work after injury.
The announcement marks a significant change from the system’s position in the early 1990s, when Nova Scotia’s workers’ compensation system was 27 per cent funded after assessment rates had been kept artificially low for years. WCB said the weak funding position affected both workers and employers, contributing to lower benefits and higher rates.
From underfunded to 117 per cent: a system rebuilt
According to the board, the system is now 117 per cent funded. WCB said that stronger funding has allowed it to begin lowering employer costs while also improving support for injured workers. A government review in 2024 acknowledged progress in the system’s financial position, but also called for faster improvements in outcomes for both workers and employers.
WCB chief executive Karen Adams said accountability across the system had contributed to the result, including accountability by the board, by employers on workplace safety, and by workers in their recovery.
Labour, Skills and Immigration Minister Nolan Young said the lower rate reflects progress in strengthening the workers’ compensation system while improving return-to-work outcomes. Business and labour representatives also welcomed the change, saying the lower rate should provide cost relief for employers while reflecting a healthier system for injured workers.
WCB said it now intends to maintain that progress while continuing to improve benefits and reduce employer costs over time.
