WCB’s Rate Model

Learn how funding levels guide employer rates and worker benefit changes.

The WCB sets employer rates and makes recommendations about worker benefits with long-term financial sustainability in mind. The goal is a workers’ compensation system that protects and helps workers and provides fair, stable rates for employers.

To support this, we use a funding model called the Approved Rate Range Framework.

What is the Approved Rate Range Framework?

The framework helps WCB decide when to:

  • Adjust the provincial average assessment rate for employers
  • Recommend benefit improvements for workers

It does this by looking at the system’s overall financial health—also called the funded percentage. That’s how much money is available to cover future claim costs.

The 3 funding levels

WCB uses 3 thresholds to guide decisions:

1. Take action: Upper threshold – over 115%

If the system is funded above 115%, extra funds can be used to:

  • Recommend benefit improvements for workers
  • Lower the average rate for employers

Only the amount above 115% is used.

2. Consider action: Within range – between 90% and 115%

The workers' compensation system is stable. Changes to rates or benefits may be considered, but only if they support long-term sustainability.

3. Take action: Lower threshold – below 90%

If funding falls below 90%, the average rate for employers will go up gradually—spread over 5 years—to bring funding back to at least 90%.

Why it matters

This framework helps prevent sudden shifts in employer rates or worker benefits. It supports steady, informed decisions and ensures the system can meet its responsibilities—now and in the future.

What else affects rate changes?

WCB sets employer rates each September, based in part on funding levels as of March 31. But other factors matter, too:

  • Rates must cover all current and future claim costs, as required by law.
  • Funding is calculated using the “going concern” method, which looks at long-term investment expectations.
  • Other considerations include claim costs, injury trends, and return-to-work results.

These factors all combine help keep rates fair and maintain the system's financial stability.

Last updated: 2025-10-21
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