Nova Scotia employers will soon pay less into the Workers’ Compensation Board for the first time in a generation.
WCB Nova Scotia announced Wednesday that the average employer assessment rate will fall 15 per cent to $2.25 per $100 of assessable payroll.
The reduction is expected to leave approximately $75 million in the provincial economy, allowing businesses to reinvest in their operations, employees and growth.
WCB Board Chair Saeed El-Darahali said the change reflects years of progress in strengthening the workers’ compensation system.
“Reaching a position of financial strength means we can now do more for the people we serve,” he said. “Workers can now begin to receive improved benefits, and employers can begin to see the cost of workers’ compensation come down.”
System now fully funded
The rate cut comes as WCB reaches a major financial milestone.
According to the board, Nova Scotia’s workers’ compensation system is now 117 per cent funded.
That marks a dramatic turnaround from the early 1990s, when the system was only 27 per cent funded and faced significant financial challenges.
WCB says the improvement is the result of careful financial management, declining workplace injury rates and more workers successfully returning to work following an injury.
Benefits for workers also improving
Officials stress the lower employer rates are not coming at the expense of worker supports.
Beginning in 2027, benefits for injured workers will be fully indexed to inflation, rather than the current system that only reflects half of increases in the cost of living.
Labour, Skills and Immigration Minister Nolan Young said the province’s focus remains on improving outcomes for both workers and employers.
“By focusing on prevention and helping Nova Scotians hurt on the job recover and return to work safely, we are improving outcomes for workers while lowering costs for employers at the same time,” Young said.
WCB says the rate reduction is part of its long-term strategy to build a sustainable workers’ compensation system that continues to improve benefits while reducing costs for employers.
The new average rate takes effect in 2027.
