icare confirms 8% average workers compensation premium rate increase in 2025-26
NSW employers set to receive annual premium renewal notices and encouraged to declare wages
Insurance and Care NSW (icare) today confirmed the average rate of workers compensation premiums in New South Wales will increase by 8% in the 2025-26 financial year.
The increase is in line with a statutory direction made by Workplace Health and Safety Minister Sophie Cotsis, capping the average rate of increase at 8% per annum over three consecutive years (2023-24 to 2025-26).
A spokesperson for icare said the increase will help the Nominal Insurer scheme cover the increasing costs of claims, following a period between 2015 and 2021 when the average premium rates did not increase.
"Workers compensation schemes across Australia are responding to inflationary pressures, higher numbers of complex claims, and investment volatility. icare's average premium increase of 8% responds to the economic environment and helps support a strong and sustainable workers compensation scheme for more than 338,000 public and private sector employers in NSW and 3.5 million workers across New South Wales," the spokesperson said.
Individual employers’ premium may vary from the 8% average, with a final rate calculated according to their specific industry, claims history, safety performance, and other risk factors. Support is available, see more resources for business below, to employers seeking to lower their premium, with discounts of up to 5% for upfront payment in full, and rewards for safer employers of up to a further 7.5%.
Declaring actual wages is an important step for delivering greater fairness and accuracy in premium calculations, and all employers are encouraged to do it. Find more information on wage declarations.
"Employers with a higher risk workplace should consider how a growth in injury claims within their industry may result in an increase above the average rate. Similarly, lower risk workplaces may receive a premium increase below the 8% average. We encourage all employers to ensure their actual wage declarations are submitted on time, talk through options with their broker, or simply visit our website for helpful guidance," said the spokesperson.
Changes associated with this year's increase include:
- The minimum premium for a policy will increase from $225 to $240 to align with the 8% average rate increase.
- In addition to the current performance criteria, eligibility for the Safe Employer Reward (SER) will include the submission of an employer’s actual wages declaration. Employers will have more than a year to prepare for this change, with the first policy period impacted by this change being FY26-27.
Background: More resources for business
icare offer a range of discounts and incentives to businesses that demonstrate a strong safety record and commitment to helping injured workers return to work.
Support for small business
Currently, small employers who make payment in full, on or before the due date receive a premium discount of 5% and small employers who have at least three years of policy history and a good safety record also qualify for a Safe Employer Reward of 7.5%.
icare also provides special guidance for small businesses, to encourage safer workplaces and reduce the risks and practices that drive up premiums. This includes delivering webinars, training and face to face educational forums via our Mobile Engagement Team. Visit the Small business hub for more information.
Support for medium to larger business
Larger employers (called experience-rated employers) who make payment in full, on or before the due date receive a discount of 3%. A Safe Employer Reward of up to 7.5% is available for those with a strong safety record. icare also offers a range of incentives, discounts, and other adjustments to help larger businesses in NSW lower the cost of their insurance premiums and be rewarded for delivering a safer workplace.
How to lower your Workers Compensation insurance premium
More information about Premiums
Detailed information on premiums:
Employers can also phone icare's Underwriting team on 13 44 22, or use the online chat.
