WSIB to rebate $1.5B to Ontario employers
More than 300,000 businesses across the province will share in an unprecedented rebate from the provincial government.
Labour, Training and Skills Development Minister Monte McNaughton announced on February 15 that his government would distribute $1.5 billion worth of surplus funding from the Workplace Safety and Insurance Board (WSIB) to those businesses with clean safety records. The announcement means that about 300,000 businesses will get back approximately 30 percent of their annual premium payments.
The announcement builds on the $2.4 billion that the province has already been given back to employers through premium reductions, and comes after the province passed legislation last fall that mandates a return of surplus funds when the WSIB’s funds reach a surplus of 115 percent.
Surplus distribution was a key recommendation in a recent independent operational review of the WSIB.
“After historic underfunding and mismanagement, Premier Ford and I are creating generational change at the WSIB to ensure it is working for workers,” said McNaughton. “We are getting cheques in the mail for businesses on Main Street who need this relief so they can pay their workers more, create new jobs, and grow our economy.”
The surplus distribution will only be provided to safe employers, who will receive their rebates starting in April. For a business with 80 to 125 employees, this could mean receiving $28,000 to reinvest in their business and workers. Eligibility details are available on the WSIB website.
“Ontario businesses are paying the lowest average premium rate in more than 20 years,” said Grant Walsh, Chair of the WSIB. “With solid financial management we can give this rebate to businesses at a time when they need it most while protecting coverage for people injured at work.”
Rebate credits will be applied to eligible businesses' accounts in April. To recognize the impact of the pandemic on certain businesses, the rebate calculation will be based on each business' premiums paid in 2019 or 2020—whichever is higher.
In addition, those businesses that are up to date with their premium payment and reporting can request to receive their surplus credit by cheque after it has been applied to their account.
"Our job is to always be here to help people who need us," said Jeffery Lang, President and CEO of the WSIB. "The best way to do that is to remain fully funded and focus on improving our services. The rebate is surplus money that could sit in our bank account, but it's better used by Ontario businesses to invest in health and safety to make Ontario a safer place to work."
This distribution comes only four years after the elimination of the WSIB’s historic unfunded liability. Today, the WSIB is in its strongest financial position in its history and, as of September 30, 2021, has $6.4 billion in reserve.
In his announcement, McNaughton promised further supports to be distributed to workers.