icare released updated Work Industry Classification (WIC) rates for the 2021/2022 policy year, impacting premiums across NSW industries. ABILITY GROUP helps employers understand these changes, manage costs, and stay compliant.
Understanding WIC Rates
The Workers Compensation Industry Classification (WIC) system groups employers by industry risk profiles. Each classification carries a rate that determines how much businesses pay in workers’ compensation premiums. With 538 classifications across 17 industry divisions, icare uses WICs to align premiums with the level of risk in each sector.
Key Changes in 2021/2022
- Average increase: Premium rates rose from 1.4% to 1.44% of wages, equating to a 2.9% average increase across the scheme.
- Targeted adjustments: Instead of a blanket rise, icare increased rates for 50% of industries by 5%, while the other half saw no increase.
- Transport sector impact: Road freight transport businesses were among those hit hardest, with rates rising from 5.22% to 5.48% for bulk freight and 6.06% to 6.36% for short distance freight.
- Risk-based approach: Industries with higher injury risks face greater premium adjustments, reinforcing icare’s focus on aligning costs with workplace safety performance.
Why This Matters for Employers
- Financial impact: Even small percentage increases can significantly affect payroll costs.
- Compliance: Employers must ensure they are correctly classified under the WIC system to avoid overpaying or underpaying premiums.
- Risk management: Industries with higher rates should invest in safety programs to reduce claims and future premium increases.
ABILITY GROUP’s Support
At ABILITY GROUP, we help employers navigate icare’s WIC system by providing:
- Premium reviews to confirm correct classification.
- Risk assessments to identify workplace hazards and reduce claims.
- Return-to-work programs that minimize downtime and costs.
- Compliance guidance to prepare for audits and inspections.
Our expertise ensures businesses not only manage premium increases but also build safer, more resilient workplaces.
Practical Steps for Employers
- Check your WIC classification: Ensure your business is correctly grouped.
- Review payroll data: Accurate reporting prevents premium miscalculations.
- Invest in safety training: Lower claims can reduce future premiums.
- Seek expert advice: Partnering with ABILITY GROUP helps employers stay ahead of regulatory changes.
Key Takeaway
icare’s 2021/2022 WIC rate changes highlight the importance of accurate classification and proactive safety management. Employers must act to control costs and protect workers. ABILITY GROUP provides tailored support to help businesses navigate these changes and strengthen compliance.
Contact us to know more https://abilitygroup.com.au/contact/
Source: iCare NSW
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