WorkCover WA determines recommended premium rates for each industry and updates the rates annually.
However, insurers can discount by any amount or surcharge these rates by up to 75%. Insurers seeking to charge a loading of more than 75% on a recommended premium rate are required to obtain approval from the WorkCover WA Authority (the Board).
WorkCover WA aims to ensure that the premium rating process is as transparent and fair as possible. See the Assessment of Premium Rates and Industry Classifications: Loading and Appeal Policy (432KB).
How your premium rate is calculatedIn determining the premium rate for your business, your insurer will:
- request a wages declaration as the recommended premium rate is based on the total amount of remuneration paid to your workers
- assign an industry classification to your business – if your business conducts more than one industry at the same single location, the classification of your predominant industry (based on gross remuneration) applies
- examine the risk factors (claims history, safety and injury management policies etc) associated with your business
- discount the recommended industry rate by any amount, or surcharge by up to 75%, depending upon your business’s individual risk factor
- insurers may surcharge more than 75% with approval from WorkCover WA, depending on the claims experience and risk associated with the operation of your business
- adjust your premium following the submission of your actual gross remuneration, depending on whether the actual wages were more or less than the estimate you first provided. If you wish to renew your policy with the same insurer, you need to submit an estimate of gross wages to be paid the following year.
If you do not provide a statement, or if your statement of actual wages is false, you may leave yourself liable for prosecution.
What is included in 'remuneration'?- wages
- salaries
- commissions
- bonuses
- overtime
- allowances and the like
- directors’ fees
- superannuation contributions (except those made by force of law)
- superannuation contributions made as part of the Superannuation Guarantee are not to be included in the calculation of ‘remuneration’. However, any other superannuation contribution made on behalf of the employee is classed as ‘remuneration’.
- fringe benefits
- all other benefits paid (whether paid in cash or non-cash benefits such as vehicles, equipment, mortgage payments, travel, school fees etc.) to or in relation to a worker (including working directors declared as such to WorkCover WA) or to contractors, before deduction of income tax.
Check with your insurer if you are unsure about how to fill out the wage declaration.
- termination payments
- retirement pay
- retrenchment pay in lieu of notice
- pensions
- ‘golden handshakes’
- weekly payments of workers’ compensation
Check with your insurer if you are unsure about how to fill out the wage declaration.
For further information contact WorkCover WA’s Advice and Assistance line on 1300 794 744.
Note: WorkCover WA (pursuant to section 100B of the Workers’ Compensation and Injury Management Act 1981) is required in some circumstances to provide employer details to WorkSafe WA.
- the industry classification, or
- premium assessment.
All loading applications and appeals are processed in line with WorkCover WA’s Assessment of Premium Rates and Industry Classification and Appeal Policy (461KB).
Further information is provided in the Information Sheet – Process – Loadings and Appeal Policy (204KB).