Employers face more cost pressures after WorkCover WA announced a 6.9 per cent increase in the 2022-23 average recommended premium for workers’ compensation insurance to take effect from July 1, 2022.
Premiums will increase to an average of 1.822 per cent of total wages, up from the 2021-22 recommended premium of 1.704 per cent of total wages.
CCIWA Principal Workplace Relations Advocate Paul Moss said this latest increase was a significant rise from last year’s four per cent increase and was driven by a rising number of claims and higher average claim costs. The increase is determined from an annual independent review commissioned by WorkCover that estimates future claim costs.
While the recommended premium has been gradually increasing since a low in 2011 of under 1.5 per cent, it remains considerably below the high of just under 3.5 per cent in 2000.
“The recommended premium varies significantly between industries, ranging from 0.25 per cent to 8.68 per cent of total wages,” Moss said.
“The premium payable by individual businesses can also vary depending on a number of factors, including their claim history. Effective work health and safety and claim management practices can therefore help minimise these costs and negotiate a better premium with their insurance provider.”
Further information on the increases is available at the WorkCover website.
CCIWA’s Workplace Health and Safety team can assist employers in ensuring they have effective safety practices in place and are compliant with the new WHS legislation. Call (08) 9365 7660 or email [email protected].