Safety levy capped at five percent

Industry-based safety programs (IBSPs) are an integral part of Manitoba’s prevention infrastructure. Training and services provided through WORKSAFELY™ and your commitment to safety have played a vital role in decreasing injury rates within our industry and the province overall. 

Over the past year WORKSAFELY™ and other key stakeholders have been involved in a review of the funding for IBSPs in Manitoba. As a result, the Workers Compensation Board of Manitoba (WCB) has launched a new funding model that provides for:

  • predictable and sustainable IBSP funding from the WCB
  • a level playing field for existing and future IBSPs
  • support for expansion and the creation of new IBSPs

Under the new funding model, the cost for running an IBSP and its services will be shared between the participating industry and the WCB, whereas previously, the costs were born solely by the participating industry. The new model will also introduce a five percent safety levy cap on the amount to be funded by employers; previously no cap existed.

As a contributing member of WORKSAFELY™, this means your safety levy will be capped at five percent of your WCB premium, which represents a significant decrease from last year’s safety levy (12.63 per cent). Funding beyond the five percent safety levy will now be provided by the WCB. As such, there will be no reduction or disruption of service from WORKSAFELY™ as we move to the new funding model.  

The WCB has the lowest assessment rate in Canada and continues to forecast a return of excess surplus to employers as part of its five-year plan. Changes to the IBSP funding model supports the continued reduction of workplace injuries and does not change the WCB’s current assessment rate or forecasted distribution of surplus funds. 

The financial success of the WCB is partly based upon prevention and return-to-work initiatives that focus on reducing the number of days lost to workplace injuries and utilize IBSPs as key partners. The new funding model and the success of IBSPs are key to the WCB’s ability to maintain low rates and a financially stable system. 

In the fall of 2019, you will receive your WCB rate statement that will reflect a five percent safety levy. If you have any questions about this new funding model or about the services that are available to you through WORKSAFELY™, please contact Don Hurst, Director of WORKSAFELY, training and education, at don@mhca.mb.ca.