Crown corporation returning $570 million of surplus funds to employers
WorkSafeBC has announced that the preliminary average base premium rate for British Columbia employers will remain at $1.55 per $100 of assessable payroll in 2026.
This will be the ninth consecutive year the average base rate has stayed at this level, pending final approval by WorkSafeBC’s Board of Directors in November.
“While the average base rate will be unchanged in 2026, each year, the costs in some industries go up, some go down, and others stay the same. In 2026, 39 per cent of employers in B.C. are projected to experience a decrease in their industry base rate, 47 per cent will see their industry base rate increase, and 14 per cent will see no change,” said WorkSafeBC.
“Given the economic uncertainties facing the province, WorkSafeBC has made changes to the maximum increases and decreases in 2026 rates for B.C. industries, which have normally been capped at 20 per cent.”
The decision to keep rates steady is supported by WorkSafeBC’s strong financial position and higher-than-required investment returns. As a result, approximately $570 million in surplus funds will be returned to employers next year by maintaining rates below the actual cost of running the workers’ compensation system. Between 2019 and 2026, WorkSafeBC projects that $3 billion in surplus funds will have been returned to employers through this approach.
WorkSafeBC is also making changes to industry rate caps to enhance stability amid economic uncertainty.
In 2026, 39 per cent of employers are expected to see a decrease in their industry base rate, 47 per cent will see an increase, and 14 per cent will see no change. Rate increases will be capped at 10 per cent, while decreases can reach up to approximately 40 per cent—a change from the usual 20 per cent cap.
WorkSafeBC says this adjustment is intended to provide greater rate stability for employers during challenging economic times.
Rebate for small employers
In May, the Canadian Federation of Independent Business (CFIB) claimed that WorkSafeBC should provide rebates to small businesses.
“Despite WorkSafeBC being 141 per cent funded, well above the 130 per cent target, B.C. is one of the few provinces that doesn’t have a policy to give that money back to employers,” said Ryan Mitton, CFIB’s director of legislative affairs for B.C. “With small business confidence at pandemic-level lows, returning a portion of this surplus to WorkSafeBC ratepayers would help small businesses fight back against U.S. tariffs and make ends meet.”
The call came after the Crown corporation released documents indicating that it is sitting on a $2 billion surplus, entirely funded by B.C. businesses, according to the group.
CFIB estimates that returning these excess funds could provide a B.C. small business with five employees up to $3,810.
The group noted: “While nine of the 12 provincial workers’ compensation boards have set policies to return surplus funds to employers, only British Columbia, Quebec, and Nova Scotia do not. By contrast, Manitoba just announced a $122 million rebate this month, while Ontario provided two rebates of $2 billion each in February and April of this year. The B.C. government has also implemented refund policies at ICBC and BC Hydro, which provided rebates in both 2024 and 2025.”
