ETOBICOKE, Ontario, Ontario businesses are expected to save $160 million in 2027 as the Workplace Safety and Insurance Board (WSIB) lowers its average employer premium rate, providing financial relief amid U.S. tariffs, rising operating costs and economic uncertainty.
The provincial government announced that the average WSIB premium will decline from $1.23 to $1.18 per $100 of insurable payroll, effective January 1, 2027. More than 80 per cent of premium-paying businesses are expected to benefit from the reduction.
The latest adjustment continues a series of premium cuts that have brought Ontario’s average rate nearly 30 per cent below the national average.
WSIB Premium Reduction Aims to Strengthen Ontario Businesses
The new premium rate represents a significant decline from 2018, when employers paid an average of $2.35 per $100 of insurable payroll.
Since 2024, Ontario has also returned approximately $4 billion in WSIB rebates to eligible businesses with strong workplace safety records.
Trevor Jones, Ontario’s Minister of Labour, Immigration, Training and Skills Development, said the reduction would give employers greater flexibility to invest in their operations and employees.
“When businesses can invest in their workers, it creates more opportunity and greater stability for families and communities,” said Trevor Jones, Minister of Labour, Immigration, Training and Skills Development. “By lowering costs, we’re helping Ontario businesses become more competitive and invest in the people who drive their success. This WSIB rate reduction gives employers more room to strengthen their teams, create safer workplaces and grow their businesses, supporting good-paying jobs across the province.”
Lower Administrative Costs Support Premium Savings
WSIB President and CEO Jeffery Lang attributed the reduction partly to improved organizational performance and lower administrative expenses.
“We’ve been able to improve results for people and reduce administrative costs, and that means more money can stay in Ontario’s economy,” said Jeffery Lang, President and CEO of the WSIB. “We’re able to help people recover and return to work while also helping over 80 per cent of businesses to receive a rate cut.”
The WSIB provides workplace insurance coverage for approximately 5.6 million workers across more than 330,000 insured businesses and workplaces in Ontario.
Employers will be able to access their individual 2027 premium rate statements through WSIB online services beginning in November 2026.
Ontario Expands Business Support Amid U.S. Tariff Pressures
The premium reduction forms part of a broader provincial strategy to strengthen business competitiveness and protect employment during ongoing trade uncertainty.
Additional measures outlined by the government include reducing the small business corporate income tax rate from 3.2 per cent to 2.2 per cent. The province estimates the change will deliver $1.1 billion in relief, with annual savings of up to $5,000 for more than 375,000 small businesses.
Ontario is also allocating $150 million through the Ontario Together Trade Fund to help companies diversify export markets, strengthen domestic supply chains and improve competitiveness.
The government has expanded eligibility for its $1 billion Protect Ontario Financing Program, which offers low-interest loans to businesses affected by tariffs.
Another $228 million is being invested through the Canada–Ontario Workforce Tariff Response initiative to help affected workers obtain training and skills suited to changing labour market demands.
Business Organizations Welcome Lower Employer Costs
The Canadian Federation of Independent Business welcomed the announcement, citing financial pressures facing employers across the province.
“On behalf of our 40,000 members in all sectors and regions of the province, we thank the Ontario government for lowering the WSIB’s average premium rate, especially at a time when businesses are struggling with high U.S. tariffs, persistent low demand, and ever-rising costs. Since employers fund the WSIB, our members always appreciate when surpluses are returned to them through surplus rebates and premium reductions.”
— Julie Kwiecinski, Director of Provincial Affairs (Ontario), Canadian Federation of Independent Business.
Ontario Chamber of Commerce President and CEO Daniel Tisch also supported the decision.
“Lowering WSIB premiums is a welcome step to reduce costs for businesses and give Ontario Chamber members, particularly small businesses, greater flexibility to invest in their people, operations and growth.”
Premium Changes Take Effect January 2027
The province says the reductions complement approximately $12 billion in existing annual business cost-saving measures.
With the revised WSIB rates taking effect on January 1, 2027, Ontario employers will have an opportunity to reassess insurance expenses and allocate potential savings toward staffing, workplace safety and business investment.
The government maintains that reducing employer costs while supporting workforce development will be central to protecting Ontario’s economy against trade-related pressures.
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