What's in a premium?
By paying a workers compensation premium, your organisation joins 400,000 employers who share the $2.5 billion cost to help injured workers recover and return to work each year in NSW.
Here is a general guide to what’s in a premium.
Small employers
If your organisation pays less than $30,000 in workers compensation insurance per year, it is classified as a ‘small employer’.
Your premium charges will include:
- a ‘basic tariff premium’ (general premium charge)
- an insurer administration charge
- a scheme administration charge
- goods and services tax
- dust disease levy
- mine safety levy.
Your basic tariff premium is calculated using your industry classification code (which determines the rate payable by your industry) and your wages bill for the period of insurance. Your industry's classification code found in annexure A of the latest Market practice premium guidelines.
Depending on the industry, a mine safety levy may also be payable.
Small employers can obtain workers compensation insurance from the Nominal Insurer (icare) and specialised industry insurers.
Medium to large ‘experience-rated’ employers
If your organisation pays more than $30,000 in workers compensation insurance, it is an ‘experience-rated employer’.
Your organisation’s claims history will be considered when your premium is calculated.
The premium will include:
- a percentage of the basic tariff premium (general premium charge), and
- a percentage of the ‘experience premium’ (based on your workers compensation claims history).
Larger companies pay a smaller percentage of basic tariff premium and a larger percentage of experience premium.
Experience-rated employers also pay:
- an insurer administration charge
- a scheme administration charge
- goods and services tax
- dust disease levy
- mine safety levy.
Depending on the industry, a mine safety levy may also be payable.
You can obtain your industry classification code from annexure A of the latest Market practice premium guidelines.
Experience-rated employers can obtain workers compensation insurance from the Nominal Insurer (icare) and specialised industry insurers.
Self-insurers
Very large employers may apply for a self-insurer licence to underwrite and manage their own claims. We regulate self-insurers to make sure they set aside enough funds to cover the cost of claims and effectively support their injured workers.
More information
Licensed insurers are required to give you (or your representative) information that’s used to calculate your workers compensation premium. Contact your insurer for more information about your premium.