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. 

P

Premium

=
APP

Average performance premium

+
D

Dust disease contribution

+
M

Mine Safety Fund Premium adjustment

-
ESI

Employer safety incentive

-
PD

Performance discount

-
A

Apprentice incentive discount

+
Q

Premiums adjustment contribution* 

+
CCC

Catastrophic claims contribution

*plus icare incentives and charges

*plus icare incentives and charges

 

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

View formula definition

Calculation example

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

Annual wages bill $1,000,000
WIC Rate 1.850%
Average Performance Premium $18,500
Small Employer Safety Incentive -$1.387.50
Dust Disease Levy $70

Total Premium$17,182.50 (before payment in full discount)

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)
Payment in full discount -$859.13
Premium charged $16,323.38

As a small employer, Rob 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

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.

  • 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 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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