Surcharge Program

Learn when a surcharge applies—and how it’s tied to claims costs over time.

Some employers consistently have much higher claims costs than others in their industry. To encourage safer workplaces and better return-to-work outcomes, WCB applies a surcharge to their premium rates.

Who is affected

Employers may receive a surcharge if their claims costs are at least 200% higher than others in their industry rate group. Employers must have exceptionally high claims costs for 4-6 consecutive rate years to receive a surcharge.

Employers receive warnings for two years prior to a surcharge being applied.

How the surcharge works

If your claims costs are more than double (200%) the average for your industry, you may have to pay a surcharge.

The first surcharge will be no more than 20% of your base rate (your starting WCB insurance rate before any discounts or surcharges).
If your costs stay high, the surcharge can increase over time.
The surcharge is added on top of your employer rate.
It’s calculated only on the amount over the 200% mark, using your base rate as the starting point.

Here is how surcharges increase over time if improvements are not made:

Surcharge Year	Maximum Surcharge
1st year	Up to 20%
2nd year	Up to 40%
3rd year	Up to 60%
Each year after	Adds up to 20% per year

The exact surcharge depends on how far over the 200% threshold your claim costs are.

Example:

Let’s say your cost experience ratio (CER) in 2026 is 250%.

That means your claims costs are 2.5 times higher than the average. Because surcharges begin once costs are double the average (200%), you are 50% over that level.

If your costs stay at 250%:

Year 1 surcharge: 20% of your base rate (your starting WCB rate before adjustments)
Year 2 surcharge: 40% of your base rate
Year 3 surcharge: 50% of your base rate (it does not reach 60%, because costs are not 260% or more)

Important to know

Cost experience ratios are recalculated every year, and your surcharge will go up or down based on performance and how many years you remain above 200%.
The surcharge is capped. WCB will not charge more than the maximum allowed under the surcharge program, even if your CER would otherwise result in a higher amount.
Your cost experience ratio is not your premium rate. A CER of 250% does not mean you pay $2.50. It only shows how your workplace’s injury costs compare to others.
Your actual premium is built from your base rate, plus any demerits, industry levies, and any surcharge applied on top. Learn more about how rates are set.

This approach ties what you pay to actual cost experience and encourages employers to invest in better safety and return to work outcomes. When costs improve, demerits and surcharges can be reduced or removed.

Surcharged employers

Surcharge Refund Program

We know that improving workplace safety takes investment. That’s why WCB offers the Conditional Surcharge Refund Program—a way for surcharged employers to get that money back when they make qualifying investments in safety.

Safe workplace resources

The WCB has many helpful resources to make your workplace safer and improve your return-to-work outcomes.

For more details on the Surcharge Program, email Employer.Incentives@wcb.ns.ca

Last updated: 2025-10-09

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