Determining premiums and your rate

Workers’ compensation coverage protects workers and employers from the impacts of workplace injuries and illnesses. The funds needed to cover the cost of WCB benefits and services are collected from registered employers in the form of premiums. Like other insurance premiums, WCB premiums are based on a combination of the risk of incurring claims costs and the value of what is insured.

What is the average rate?

The average rate is a baseline, and is what each employer would pay if every employer paid the same WCB rate. We use it to set rates for each classification group.

When the total cost of injuries for all covered employers in Manitoba decreases, the average rate decreases, decreasing the baseline rate for all employers. If the average rate increases, the baseline rate for all employers increases.

Manitoba employers have maintained one of the lowest average rates in Canada at an all-time low of $0.95.

How rates are set

The cost of injuries at your workplace directly affects your risk. Those who have more costs typically pay a higher premium. Your rate is set by measuring three full years of your costs from three full calendar years of claims that you have filed with the WCB compared to the average. 

As part of the rate calculation, we compare your injury costs to an average employer of similar size and risk. If your rate has gone up, it means that either your costs are higher or your industry classification’s performance has declined. If your costs are lower, you’ll likely see a decrease in what you pay. Your WCB rate cannot move up or down more than 15 per cent from year to year.

If you’re a new employer in Manitoba, you don’t have any previous claims cost experience with the WCB to establish your rate. Your premium will be determined by a new employer rate assigned to your industry classification. An employer may receive the new employer rate for up to three years. The new employer rates are updated on the website each year.

If you would like to know what claims costs affect your rate, please refer to your monthly Claim Transaction Statement. Contact your assigned Adjudicator or Case Manager with any claim cost questions.

Industry classifications

Workers compensation insurance premiums are a blend of collective and individual liability. This means your premium is based on the risk of potential injury costs at your workplace and the risk at workplaces with similar business activities. We group similar businesses together—this is your industry classification. 

There are approximately 175 industry classifications in Manitoba. When you register with the WCB, your business is assigned to an industry classification based on the kind of work you do. Each industry classification is assigned a risk category that describes their cost of injuries compared to the system average.

There are 18 risk categories. An industry with a risk category above 100% has more injuries than the average, and an industry with a risk category below 100% has fewer injuries than the average.

View the classification category list at Industry classifications.

Employer size and rate range

Within each classification, employers pay more or less than the classification base rate based on their past claims costs. The range is based on employer size. Small and medium employers have a narrower rate range than large employers. A narrower rate range protects small and medium employers against sharp changes in their rate caused by sharp changes in their claims costs.

	Small employers	Medium employers	Large employers
Payroll size	Up to $750,000	$750,000 – $7.5 million	Over $7.5 million
Risk category range	10% below to 30% above category range	20% below to 60% above category range	40% below to 120% above category range

Experience factor

An employer’s experience carries different weight based on their size. A large employer’s individual costs have a greater impact on the premiums they pay, whereas for small and medium employers, the industry classification they are in has a greater impact on what they pay.

	Small employers	Medium employers	Large employers
The percentage of your individual experience used to calculate your rate	20%	30-40%	40-100%
The percentage of your classification’s experience used to calculate your rate	80%	60-70%	0-60%

Generally, an employer who invests in safety and prevention and makes every effort to return injured workers back to health and safe and suitable work will have lower claim costs and pay a lower rate.

Learn more about classifications and their risk categories.

Rate notifications

In the fall, the WCB provides you with an annual rate notification that explains your current rate, what your rate will be in the upcoming year and information about your industry classification.

The rate notification is for information only and is not an invoice – you aren’t required to do anything or send us any payment.

Many employers use their rate notification to estimate their WCB costs for the upcoming year’s budget. It’s a simple calculation to determine your approximate WCB premium based on your rate and estimated payroll for the year.

In early January, you’ll receive a request for Annual Payroll Information. This information is required by the last calendar day of February. We’ll calculate your premium based on your rate and the payroll information you provide and send you an account statement based on your preferred payment schedule.

Balancing adjustment

Because many factors are involved when we calculate premiums, it can be difficult to ensure that the revenue raised by premiums matches the revenue we require to cover workplace injuries and illnesses. Once rates have been determined, we apply a balancing adjustment evenly to all employers to ensure we can break even. For 2025 rates, the balancing adjustment is 0.99%.

Industry-based safety programs

Industry-based safety programs (IBSPs), in partnership with SAFE Work Manitoba, are designed to support employers in establishing an effective safety and health program, to assist in identifying workplace hazards and to 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 in part by all employers within the corresponding levied classification codes. The WCB collects and distributes these program fees (called a safety levy) through employers’ premiums as a percentage of their rate.

Employers who are represented by an industry-based safety program and who embrace workplace injury prevention can reduce the number and cost of injuries in their workplace and, as a result, benefit from lower rates.

Learn more about industry-based safety programs.