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. 

P

Premium

=
APP

Average performance premium

+
D

Dust diseases contribution

+
M

Mine Safety Fund Premium adjustment

-
SER

Safe Employer Reward

-
PD

Performance discount

-
A

Apprentice incentive discount

+
Q

Premiums adjustment contribution* 

+
CCC

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 2.000%
Average Performance Premium $24,000
Premium before adjustments $24,000

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 $1,800.

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.

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WICs and premium rates

Claims Performance Adjustment rates

Premium formula definitions

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

Eligibility:

  • 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 (%)

OR

  • 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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