If your rate changed in 2018, there a number of factors which may have influenced its movement in either direction.

 

Average Assessment Rate

The WCB average assessment rate for 2018 decreased to $0.95. This represents a 14 per cent decrease from last year. As a result, all classification base rates also decreased by 14 per cent. Your 2017 rate was restated with a 14 per cent reduction as the starting point for your 2018 rate calculation. 

 

Industry Classification and Risk Category Ranges

All employers are assigned to an industry classification. Each classification is assigned a risk category based on how much we expect each classified employer group to cost the WCB system in future years. Each classification risk category is assigned a base rate that is the starting point to establish a rate range for the classification.

Risk category ranges provide flexibility for employers to move above or below their classification base rate based on the claims costs in their workplace and payroll size.

We adjusted all 2018 classification rate ranges because of the reduction in the base rate and also made the following changes to the rate ranges based on employer size.

Employer Size Based on Payroll 2018 Risk Category Range 2017 Risk Category Range
Small - payroll less than $750,000 10% below to 30% above their risk category
base rate
20% below to 120% above their risk category
base rate
Medium - payroll of more than $750,000 and less than    
 7.5 million
20% below to 60% above their risk category
base rate
20% below to 120% above their risk category
base rate
Large - payroll of $7.5 million or more No change 40% below to 120% above their risk category
base rate

Changes to the rate range for small and medium employers may have moved your rate up or down. For small employers who were paying the lowest possible rate in 2018, the increase to the bottom of the rate range should be offset by the decrease to the WCB average rate.

Choose the heading below that represents your size based on your annual payroll to see the rate ranges for each risk category. Your risk category, size designation and rate range based on your risk category are all detailed in your rate letter. If you don't have your rate letter, you can find out which risk category is assigned to your classification here.

Small Employer

2018 Classification Rate Ranges for Small Employers Based on WCB Base Rate of $0.95

Classification Risk Category Classification Risk Category Base Rate Rate Range 10% Below to 30% Above Risk Category Base Rate
15% $0.14 $0.13 - $0.19
25% $0.24 $0.21 - $0.31
40% $0.38 $0.34 - $0.49
70% $0.67 $0.60 - $0.86
120% $1.14 $1.03 - $1.48
200% $1.90 $1.71 - $2.47
300% $2.85 $2.57 - $3.71
500% $4.75 $4.28 - $6.18
800% $7.60 $6.84 - $9.88

The risk category base rates and the corresponding rate ranges identified above do not include balancing or safety program levies. The addition of these factors will increase the amounts shown.

Medium Employer

2018 Classification Rate Ranges for Medium Employers Based on WCB Base Rate of $0.95

Classification Risk Category Classification Risk Category Base Rate Rate Range 20% Below to 60% Above Risk Category Base Rate
15% $0.14 $0.11 - $0.22
25% $0.24 $0.19 - $0.38
40% $0.38 $0.30 - $0.61
70% $0.67 $0.54 - $1.07
120% $1.14 $0.91 - $1.82
200% $1.90 $1.52 - $3.04
300% $2.85 $2.28 - $4.56
500% $4.75 $3.80 - $7.60
800% $7.60 $6.08 - $12.16

The risk category base rates and the corresponding rate ranges identified above do not include balancing or safety program levies. The addition of these factors will increase the amounts shown.

Large Employer

2018 Classification Rate Ranges for Large Employers Based on WCB Base Rate of $0.95

Classification Risk Category Classification Risk Category Base Rate Rate Range 40% Below to 120% Above Risk Category Base Rate
15% $0.14 $0.08 - $0.31
25% $0.24 $0.14 - $0.53
40% $0.38 $0.23 - $0.84
70% $0.67 $0.40 - $1.47
120% $1.14 $0.68 - $2.51
200% $1.90 $1.14 - $4.18
300% $2.85 $1.71 - $6.27
500% $4.75 $2.85 - $10.45
800% $7.60 $4.56 - $16.72

The risk category base rates and the corresponding rate ranges identified above do not include balancing or safety program levies. The addition of these factors will increase the amounts shown.

It should be noted that a large employer can move away from their classification risk category and have a different range of rates than other employers in the same classification if they show consistently different experience from their classification group. This is consistent with our previous model with the exception that now there are limits to the number of categories to which a large employer may move. Depending on their size, a large employer could move up or down from two to six risk categories.

 

Claims Costs or no Claims Costs

If you’ve had claims in 2012 through 2016, any eligible costs for the rate setting period (January 1, 2016 to December 31, 2016) are added up, and compared to an average employer of similar size and risk. If your costs are higher than average, your rate will likely increase. If your costs are lower, your rate may go down.

Beginning later in 2017, we will send you Claim Transaction Statements that identify the costs related to your claims. The Costs Used to Set Premium Rate column shows all costs used in the calculation of rates. If you did not receive a Claim Transaction statement in 2017, you likely had no claim costs.

 

Rate Increase/Decrease Limits

We have limits built into the rate model to protect you from too much fluctuation in any given year. Your rate cannot generally move up or down more than 15 per cent from year to year. In most cases, your rate also can't go below the lower or above the upper end of the range. 

 

Industry-Based Safety Programs

Manitoba has many industry-based safety programs that work in partnership with SAFE Work Manitoba to help keep workers safe on the job. Through these safety programs, employers can work together to reduce their individual and classification-wide injuries and resulting costs.

These programs are funded by all employers within the corresponding classification. The WCB collects these program fees (called a safety levy) through employers’ premiums as a percentage of their rate.

There are safety association programs for other industry classifications; however, these programs are not currently funded through WCB fees. 

Classification Code Safety Program Contact Number
310-02, 310-04, 310-08, 310-09,
310-10, 314-03, 314-04, 314-05,
315-10, 315-23, 316-07, 320-02 and 604-08
Made SAFE -
Canadian Manufacturers & Exporters MB
204-949-1454
407-02 to 407-09 and 408-02 to 408-09 Manitoba Heavy Construction 204-947-1379
All other industry codes starting with “4” Construction Safety Association of Manitoba 204-775-3171
501-02, 501-09 and 501-11 RPM Trucking Industry Safety Program 204-632-6600
604-02, 604-04 and 605-03 Motor Vehicle Safety Association of Manitoba 204-779-8296

Learn more about Industry-Based Safety Associations. 

 

Balancing Adjustment

Because there are many factors involved in determining each employer's rate, it can be difficult to ensure revenue raised matches the revenue we need to cover workplace injuries and illnesses. Once rates have been determined, we apply a balancing adjustment evenly to all employers to ensure we are able to break even.

For a more detailed explanation of any rate change you experienced in 2018, please contact Assessment Services

 

Rate Calculation Examples

Small Employer

John's Concrete Supply has $300,000 in annual payroll and his classification, 60903 - Concrete Supply, is in the risk category 120 per cent. John knows his classification and risk category because this information is provided to him each year in his rate letter.

John's company generally has little or no claim costs each year - nor do they pay into an industry-based safety program.

  1. John's Concrete Supply had a 2017 WCB Rate of $1.25.
  2. Due to the average rate decrease to $0.95 from $1.10, John's 2017 rate was reduced to $1.08 to start the calculation for his 2018 rate.
  3. Because John's company has payroll of $300,000, his company is determined to be "small" for the purposes of setting his rates. This information is also included in John's rate letter.
  4. The range of rates John could potentially pay are based on his classification average rate of $1.14 (120 per cent of the WCB average rate of $0.95). Because John's payroll is considered small, the rate range is 10 per cent below to 30 per cent above his classification average, or $1.03 to $1.48.
  5. Of the claims John's company had in 2012, 2013, 2014, and 2015, none generated any costs between January 1, 2016 and December 31, 2016 - nor were there any new claims in 2016.
  6. Since John's company had no claims costs, their experience rate is $0.00. Their classification average rate is $1.14 (120 per cent of the WCB average rate of $0.95). As a small employer, John's company is assigned an experience factor of 20 per cent. This means we calculate their forecast rate based on 20 per cent of their own experience and 80 per cent of their classification average rate:
    (20 per cent x 0.00) + (80 per cent x 1.14) = $0.91 forecast rate.
  7. Because John's Company's forecast rate is lower than their starting rate in Step 2, they are entitled to a rate decrease. Since John's Company's forecast rate is more than 15 per cent below its starting rate in Step 2, they are entitled to the maximum rate decrease of 15 per cent and will receive the lowest possible rate in their classification of $1.03
  8. John's rate is $1.03 + 3.99 per cent balancing adjustment, which results in a final 2018 rate of $1.07.

Medium Employer

PopsRUS has $5,000,000 in annual payroll and is in Classification 30209 - Manufacturing Soft Drinks. This classification is in the 70 per cent risk category as outlined in their rate letter. Due to their payroll size, they are considered a medium employer for the purposes of rate setting. This information is also contained in their rate letter.

PopsRUS generally has higher than average claim costs each year. Their classification is associated with an Industry-Based Safety Program; as such, a safety levy of 5 per cent is added to their rate.

  1. PopsRUS had a 2017 WCB rate of $0.92.
  2. Due to the average rate decrease to $0.95 from $1.10, PopsRUS 2017 rate was reduced by 14 per cent to $0.79 for the purpose of calculating their 2018 rate.
  3. PopsRUS is considered a medium sized employer based on their payroll size. This information is also included in their rate letter.
  4. The range of rates they could potentially pay is based on their classification average rate of $0.67 (70 per cent of the WCB average rate of $0.95). Because they are considered a medium-sized employer, their rate range is 20 per cent below to 60 per cent above their classification average, or $0.54 to $1.07.
  5. From the claims PopsRUS had in 2012, 2013, 2014, 2015 and a new claim they had in 2016, they had $30,000 in claim costs between January 1, 2016 and December 31, 2016.
  6. PopsRUS's claim costs of $30,000 is higher than would be expected from an average employer of comparable size in the same risk category. This results in an experience rate of $1.64. Their classification average rate is $0.67 (70 per cent of the WCB average rate of $0.95). Based on PopsRUS's average annual payroll of $5,000,000, their experience factor is 32 per cent. This means their forecast rate for 2018 is based on 32 per cent of their own experience and 68 per cent of their classification average rate: (32 per cent x 1.64) + (68 per cent x 0.67) = $0.98 forecast rate. 
  7. Because PopsRUS's forecast rate is higher than its starting rate in Step 2, they will receive a rate increase. PopsRUS will trend towards $0.98; however, because the rate model limits how much a rate can increase per year, they will get the maximum rate increase of 15 per cent, moving their rate to $0.91.

PopsRUS Rate is $0.91 + 3.99 per cent balancing adjustment + 5 per cent safety levy for a rate of $1.00 in 2018.

Large Employer

Wesell is classified within 60105 - General Retail Sales which is in the 40 per cent risk category. They have $25,000,000 in annual payroll. Due to prevention and disability management strategies they've implemented over the last several years, they generally have consistent claim costs year over year.

  1. Wesell had a 2017 WCB Rate of $0.45.
  2. Due to the average rate decrease to $0.95 from $1.10, Wesell's 2017 rate was reduced to $0.39 to start the calculation for their 2018 rate.
  3. Because Wesell's payroll is greater than $7.5 million each year, they are considered a large employer for rate setting purposes. Their status as a large employer is confirmed in their rate letter each year.
  4. The range of rates Wesell could potentially pay is based on their classification average rate of $0.38 (40 per cent of the WCB average rate of $0.95). Because Wesell is a large employer, their range of rates is 40 per cent below ($0.23) to 120 per cent above ($0.84) their classification average rate.
  5. From the claims Wesell had in 2012, 2013, 2014, 2015 and new claims they had in 2016, they had $40,000 in claim costs generated between January 1, 2016 and December 31, 2016.
  6. Wesell's claim costs of $40,000 is lower than would be expected from an average employer of comparable size in the same risk category. This results in an experience rate of $0.35. Their risk category average rate is $0.38 (40 per cent of the WCB average rate of $0.95). Based on Wesell's average annual payroll of $25,000,000 their experience factor is 71 per cent. This means that their forecast rate is based on 71 per cent their own experience and 29 per cent of their risk category average rate: (71 per cent x 0.35) + (29 per cent x 0.38) = forecast rate.
  7. Because Wesell's forecast rate is lower than its starting rate in Step 2, they are entitled to a rate decrease. Wesell will receive its forecast rate of $0.35 since it is within 15 per cent of its starting rate in Step 2.

Wesell's rate is $0.35 + 3.99 per cent balancing adjustment for a rate of $0.36 in 2018.

 

 

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