Legal News

Employer WCB Contributions to be Reduced
August 4, 2006

The BC Workers’ Compensation Board has announced plans to reduce the average employer base rate for WCB contributions by 9.8% in 2007. The rate will move from $1.90 to $1.71 per $100 of assessable payroll.

Despite stable injury rates and a trend towards shorter injury duration, the decrease is due largely to double-digit portfolio investment returns rather than reduced claims costs.

The changes will vary by sector to reflect claims experience. Base rates will be reduced for 68% of employers, 10% will pay the same, and 22% will experience rate increases. Specifically,

•Sawmills, paper mills, and employers engaged in industrial and home construction will receive a 20% decrease;

•Public schools, hotels, supermarkets and employers involved in road construction and trucking will receive a reduction of at least 15%;

•Base rates for electrical utilities and forestry will remain virtually unchanged; •Increases will be faced by gas stations (20%), department stores (7.5% ) and ferry services (6.6%);

•Rates for various business services will increase slightly.

The announced reductions are estimates. Final rates may vary when they are set in October, 2006.