Premium calculation for small employers

You are considered a small employer if your average performance premium is $30,000 or less. This means your premium is not directly impacted by claims costs.*

Premium formula

The formula below shows you how your premium is calculated. Please refer to the table below for definitions of each component. 




Average performance premium


Dust diseases contribution


Mine Safety Fund Premium adjustment


Safe Employer Reward


Performance discount


Apprentice incentive discount


Premiums adjustment contribution* 


Catastrophic claims contribution

*plus icare incentives and charges

Where a Catastrophic claim contribution is applied, it is charged separately.

*eligibility for the Safe Employer Reward (SER) may be impacted by claim costs.

View formula definition

Calculation example

Smiling man wearing an apron in a butcher shop
Rob's Restaurant

Annual wages bill $1,200,000
WIC Rate 2.200%
Average Performance Premium $26,400
Premium before adjustments $26,400

As the employer has no time loss claims or catastrophic claim charges in the last three policy periods, the Safe Employer Reward will reduce the premium by $1,980.

As an employee, Sarah slipped and injured her ankle at work, and was off work for 8 weeks. She returned on a graduated Return to Work plan.

Claims costs incurred $9,600 (Sarah's wages for 8 weeks)

As a small employer, Rob does not pay any additional premium for his claims experience, but will not be eligible for the Safe Employer Reward for three years from the next renewal.

Premium formula definitions

Acronym Term Description Details
A Apprentice Incentive
  • apprentice wages x WIC Code % rate
  • discounted from premium after premium payable is calculated


  • NSW employers who employ apprentices under a NSW Training Services contract
APP Average Performance Premium (previously known as Basic Tariff Premium BTP)
  • wages x WIC Rate (%)


  • number of plates, rides, bouts, drives x WIC rate ($) - for per capita WICs
 CCC Catastrophic Claim Contribution
  •  APP x contribution % rate
  • applied when work related incident (or its complications) involves a fatality
  • applied only once per incident, regardless of number of fatalities
  • applied at end of policy year in which incident occurred
D Dust Diseases contribution 
  • dust diseases rate per WIC plus GST
  • an additional amount included in total premium payable
  • DDL rates published on the SIRA website do not include GST
ESI Employer Safety Incentive
  • APP x ESI%
  • discount off premium payable (before adjustments)

Employers get to keep this incentive regardless of claims.

  • this is a contribution to assist employers to implement Workplace Health and Safety.

Available for the following policy renewal years:

  • 2015/16
  • 2016/17
  • 2017/18
  • 2018/19
  • 2019/20
  • 2020/21
  • 2021/22
  • 2022/23
 SER  Safe Employer Reward  APP x SER%

 A performance based reward applied at policy renewal on the basis of:

  • 3 years of policy history; and
  • within the last 3 years
    • no weekly benefit claims costs or
    • catastrophic claim charges 
M Mine Safety Fund Premium Adjustment (MSFPA) Mining Wages x MSFPA % rate
  • set rate per annum applied to Division B Mining employers (WIC Codes 120000 to 152000)
  • an additional amount included in total premium payable
  • collected for the Mine Safety Fund
  • paid by icare to Department of Regional NSW under Mine and Petroleum Site Safety (Cost Recovery) Act 2005
P  Premium  Total premium payable including adjustments.

Premium is calculated twice annually:

  • at renewal (based on estimate of wages)
  • at adjustment (based on actual wages)
PD Performance Discount A percentage discount applied to (APP - Apprentice APP)
  • applied at hindsight adjustment
  • based on employer’s claims performance
  • may not be applied every policy year - depends on Scheme financial performance
Q Premiums Adjustment Contribution Additional levy (available if required by icare)

Set to '0'

  • not applied to date
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