Thursday, November 23, 2017
St. John’s, NL – The average assessment rate for workers’ compensation coverage will be lowered from $2.06 to $1.90 per $100 of payroll for employers in Newfoundland and Labrador, a 7.8 per cent decrease. The Maximum Compensable and Assessable Earnings (MCAE) will increase to $64,375, the highest in Atlantic Canada. Both are effective January 1, 2018.
Approximately 87.3 per cent of employers will see their 2018 assessment rate decrease or stay the same. The average rates in all 18 sectors will be lower. The largest decreases are in the agriculture (11 per cent), manufacturing (10 per cent) and transportation and storage (10 per cent) sectors.
New this year, employers using WorkplaceNL’s connect online service will only receive their rate notice online. Paper notices will only be mailed to employers who do not yet have an active connect account. Online notices are available today; paper notices will start to go in the mail later this week.
The lost-time injury rate continues to be at an all-time low of 1.5 per 100 workers. This positive trend in safety performance in workplaces across Newfoundland and Labrador contributed to the 22 per cent reduction in assessment rates over five years (2014-2018).
“Lower claims costs continue to be the driver determining lower assessment rates for employers in Newfoundland and Labrador. Fewer claims from injured workers typically means lower costs for employers, and more people going home safely at the end of their work day,” said Dennis Hogan, CEO, WorkplaceNL. “We continue to work closely with employers, workers, labour groups and safety associations to evolve our province’s safety culture while maintaining a financially sustainable workers’ compensation system.”
Assessment rates are premiums paid by employers to cover expected costs of workplace injuries, return-to-work programs, prevention initiatives and the cost of administering the workers’ compensation system.
Due to prudent management and positive investment returns, the injury fund is now 126.1 per cent funded.
The increase in the MCAE reflects a 1.5 per cent increase in the Consumer Price Index (CPI). Wage-loss benefits for injured workers submitting a new claim whose pre-injury earnings are at or above $64,375 will be calculated using this new limit starting January 1, 2018.
The complete Classification of Industries and Assessment Rates – 2018 is available via workplacenl.ca.
Serving approximately 13,000 injured workers and 19,000 employers, WorkplaceNL is an employer-funded, no fault insurance system that promotes safe and healthy workplaces, provides return-to-work programs and offers fair compensation to injured workers and their dependents.
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Carla Riggs, Director of Communications
t 709.778.1590 or email@example.com