Rate setting

In Alberta’s workers’ compensation system, your employer premium rate directly reflects your industry’s performance as well as your own. Your premium rate is the cost of coverage per $100 of assessable earnings of all your workers (plus any personal coverage you buy for yourself).

We set rates using the following principles:

  • Full funding. We need to collect enough premiums to ensure we can fund all the current and future costs of the claims that arise each year.
  • Collective liability. Your rate is affected by the claims experience and trends within your rate group. Costs are spread amongst all employers, creating a balance between collective liability and individual employer accountability.
  • Accountability and incentives. Rates vary based on claims experience, so each employer and industry is accountable for their performance. Your performance and participation in incentive programs like Partnerships in Injury Reduction can help reduce this risk.

There are other programs in place like Occupational Injury Service to help you reduce the rate you pay. Developing modified work for your injured workers and tapping into the resources available through your safety association can also help lower your premiums.

2022 premium rate information

While the average premium rate is $1.17, your individual rate will vary based on performance. Fewer claims, lower costs and safer workplaces equal lower premium rates.

December's edition of Worksight provides an in-depth look at how 2022 rates were established.

Here's the breakdown for 2022:

Fully-funded claims cost - 79%

Fully-funded administration cost - 15%

Occupational Health and Safety, safety associations and Appeals Commission - 6%