Ontario’s Workplace Safety and Insurance Board (WSIB), Canada, is lowering the average premium rate for employers in 2027 to CA$1.18 per $100 of insured payroll. That is down from $1.23 in 2026 and a sharp drop from $2.35 in 2018. The new rates take effect on January 1, 2027; businesses will be able to view their individual premium statement from November 2026 through WSIB’s online services. According to the WSIB and the provincial government, this puts Ontario nearly 30 percent below the Canadian average.
Lower costs for most businesses
According to WSIB CEO Jeffery Lang, more than 80 percent of employers will see a rate cut in 2027. The WSIB insures about 5.6 million workers at more than 330,000 businesses and workplaces across the province. The WSIB says the reduction will leave roughly $160 million more in the Ontario economy. The province says it has paid out a total of $4 billion in WSIB rebates since 2024 to employers with a strong safety record. In late summer, the WSIB announced it would cut hundreds of positions and close its physical offices in Northern Ontario.
Part of a broader response to import tariffs
The Ontario government is presenting the premium cut as part of a broader package of measures to offset the impact of U.S. import tariffs on the provincial economy. The small business corporate tax rate is being cut from 3.2 to 2.2 percent, providing an estimated $1.1 billion in relief for more than 375,000 small businesses. The province is also putting $150 million into the Ontario Together Trade Fund, widening eligibility for the Protect Ontario Financing Program ($1 billion in low-interest loans), and directing $228 million toward retraining affected workers through the Canada-Ontario Workforce Tariff Response. Labour Minister Trevor Jones says the lower premium gives employers more room to invest in their workers; Associate Minister of Small Business Nina Tangri calls it extra relief that helps small businesses manage costs and retain staff. Daniel Tisch, President and CEO of the Ontario Chamber of Commerce, calls the cut a welcome step toward lowering costs for businesses.
Higher injury benefits in the works
Separately from the premium cut, an April 2026 proposal would raise the loss-of-earnings (LOE) benefit for workers with work-related injuries from 85 to 90 percent of net earnings. If the required legislation passes, it would be the first increase to the income-replacement rate in almost thirty years. The WSIB would also gain the authority to continue benefits past age 65 for workers who want to keep working.
Context
Elsewhere in Canada, a different course is being taken. In the western province of British Columbia, workers’ compensation insurer WorkSafeBC kept its average base premium rate for 2026 unchanged at $1.55 per $100 of payroll, for the ninth year in a row. WorkSafeBC covers the gap between that rate and the actual cost of $1.83 from a surplus, which is expected to return about $570 million to employers in 2026. Due to economic uncertainty, WorkSafeBC did lower the maximum sector rate increase for 2026 from 20 to 10 percent, and the organization warns that rising claim costs and a smaller surplus could push the rate slightly higher in the future.
Source: Canadian Occupational Safety / thesafetymag.com. Context: WorkSafeBC.
