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 will not be impacted by your 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. 

Premium equals average performance premium plus dust disease contribution plus mine safety fund premium adjustment minus employer safety incentive minus performance discount minus apprentice incentive discount plus premiums adjustment contribution plus catastrophic claim contribution

Calculation example

Smiling man wearing an apron in a butcher shop


Bill's Butchery

Annual wages bill $750,000
WIC Rate 3.51%
Average Performance Premium $26,325
Small Employer Safety Incentive -$1974
Dust Disease Levy $60

Ben injured his wrist and was off work for 15 weeks and returned on a graduated RTW plan.

Claims costs incurred $14,000 (Ben's wages for 15 weeks)
Payment in full discount -$1220
Premium charged $23,191

As a small employer, Bill does not pay any additional premium for his claims experience.

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
 C 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.

  • The percentage discount may vary from year to year.
  • This is a contribution to assist employers to implement Workplace Health and Safety.
M Mine Safety Fund Premium Adjustment (MSFPA) Mining Wages x MSFPA % rate
  • set rate per annum applied to Division B Mining employers (WIC Codes 120,000 to 152,000)
  • an additional amount included in total premium payable
  • collected for the Mine Safety Fund
  • paid by icare to NSW Department of Planning, Industry & Environment 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