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Premium calculation

Paying workers compensation premiums helps contribute to the $2.5 billion used annually in NSW to assist people with an injury in their recovery and return to work. Below is a simple guide to understanding how your premium is calculated.

Basic tariff premium

An employer's basic tariff premium is based on the amount they pay their workers during an insurance period. This amount is multiplied by the workers compensation industry classification (WIC) rate assigned to their particular business activity by their insurer. For further information on the WIC system, refer to the workers compensation market practice and premiums guidelines.

Small employers

Employers with a basic tariff premium of less than $30,000 are classified as a ‘small employer’.

The premium calculation includes:

  • a ‘basic tariff premium’, based on your industry classification and wages paid
  • goods and services tax
  • dust disease levy
  • mine safety levy (if applicable to your industry).

Medium to large employers

Employers with a basic tariff premium greater than $30,000 are considered an ‘experience-rated employer’.

The premium calculation includes:

  • a ‘basic tariff premium’, based on your industry classification and wages paid
  • an ‘experience premium’, based on your workers compensation claims history.

Experience-rated employers also pay:

Industry classification codes can be found in annexure A of the market practice and premium guidelines.

Self-insurers

Very large employers may apply for a self-insurer licence to manage their own workers compensation claims.

SIRA regulates self-insurers to make sure they set aside enough funds to cover the cost of claims and effectively support their workers with an injury.

More information on self-insurers

information info
Questions about your premium?

Contact your insurer for more information about your premium.

Updated 19 December 2024

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