The WSIB Cuts Premiums and Launches Rate Framework

Most Ontario general contractors will experience another decrease in their WSIB premiums again next year.

Over a three year period, the premium for general contractors will be cut by just over 50%, saving our members hundreds of millions of dollars.

The sudden change was a result of the success of a ten year program in which WSIB held the line on costs and employers paid a huge additional premium to pay down the unfunded liability. It has been projected that the construction industry paid $15 billion to bring the board to balance. The fee for previous claims has now been removed from the assessment calculation.

The WSIB has announced that they are now operating with a healthy surplus of $10 billion which will be maintained as a cushion to ensure they do not slip back into a deficit position.

All employers have now been mailed their 2020 Premium Rates generated under the new Rate Framework system. Premiums are calculated for each employer and will be based on your rating group (G1 for buildings) with an adjustment based on your 6 year cost profile. The ICI rate #723 no longer will exist and ICI and residential builders are now under class G1. The average rate for it will be $2.30, a reduction on average of 23 cents or 9%. Your rate will be adjusted from this number.

You will be able to access your WSIB data through the online WSIB Compass tool, which we understand will allow you to check the calculations the Board used to drive your assessment.

We are looking for feedback on your experience with the new system and are preparing to provide you with additional information as it becomes available.