TORONTO — The Workplace Safety and Insurance Board will lower its average premium rate from $1.23 to $1.18 per $100 of insurable payroll for more than 80% of premium-paying businesses in 2027, according to the Ontario government.The reduction is expected to save employers a total of $160 million next year. It continues a series of rate cuts that have brought Ontario’s average premium rate nearly 30% below the national average.Since 2024, the province has returned $4 billion in WSIB rebates to eligible businesses with strong safety records. The government says the latest cut gives employers more flexibility as they manage the effects of U.S. tariffs on key Ontario sectors.The WSIB is the provincial agency that provides wage-loss benefits, health care, and return-to-work support for workers injured on the job. Premiums paid by employers fund the system.The Ford government has repeatedly pointed to lower WSIB rates as a measure to improve business competitiveness. Officials have framed successive reductions as a way to keep workers employed while companies face higher costs from trade measures..It is not yet clear how the 2027 rate change will affect the WSIB’s long-term funding position or future claim costs. The board has not released a detailed breakdown of how the $160 million figure was calculated or which industries will see the largest reductions.Ontario’s average premium rate has fallen in multiple years under the current government. Earlier cuts were also accompanied by rebates to employers that met safety criteria.Business groups have generally welcomed lower WSIB premiums as a reduction in operating costs. Critics of the approach have previously questioned whether repeated rate reductions leave the system with less capacity to handle rising claim volumes or major workplace incidents.The 2027 rate of $1.18 per $100 of payroll applies to the majority of employers. A smaller share of businesses will face different rates depending on their industry classification and claims experience.The announcement comes as the province prepares a fall fiscal update expected next week. Finance Minister Peter Bethlenfalvy has said the update will address pressures on Ontario’s steel, auto, and manufacturing sectors linked to U.S. trade measures.
