WorkSafeBC has released its 2025 Annual Report and 2026-2028 Service Plan. The annual report shows that WorkSafeBC continues to be in a strong financial position, as it works to ensure the long-term sustainability of the workers’ compensation system for workers and employers.

2025 key highlights

At the end of 2025, WorkSafeBC’s funding level (assets over liabilities) was 139 per cent — exceeding the 130 per cent target — but less than the 141 per cent level in 2024. Last year was the first time since 2016 that the funding level was below 140 per cent. The funding level at the end of 2025 equated to surplus funds totalling $1.7 billion, down from just under $2.0 billion the year prior.

WorkSafeBC’s rate-setting approach includes mechanisms to return surplus funds to employers when the funding level exceeds its target. In 2026, the average base premium rate of $1.55 per $100 of assessable payroll was priced below the expected average total cost rate of $1.83, with the difference funded by the surplus.

Between 2018 and 2026, an estimated $3.2 billion of surplus — including $564 million in 2026 — will have been used to keep premium rates stable and below the cost to run the workers’ compensation system.

 In 2025, premium income was $2.4 billion, an increase of $75 million over 2024. This increase is attributed to growth in assessable payroll, as the average base premium rate did not change last year. The average base premium rate has been flat since 2018.

 In 2025, the investment portfolio had a fair value return of 7.5 per cent and outperformed the long-term required rate of return of 5.2 per cent.

 In 2025, total claim costs, excluding claim administration, totalled $3.6 billion. Claim costs increased by $392 million over 2024, driven by increased benefit entitlements for injured workers, growing claim complexity, and a recent upward trend in long-term disability claim costs. Claims involving chronic pain and psychological injuries increased from 10 per cent of all claims in 2019 to 14 per cent in 2025, leading to higher costs and longer claim durations.

 In 2025, WorkSafeBC launched an organization-wide, multi-year approach to modernize claims management and ensure all injured workers receive timely, evidence-based support.
Prevention focus: WorkSafeBC continued to focus its prevention efforts in high-risk areas and on ensuring consistent inspections across industries and regions. Targeted risk-reduction strategies were developed and implemented, including a refreshed crane-safety initiative.
Time-loss claims rate: In 2025, the provincial time-loss claims rate was 2.04 per 100 workers — approximately 1 per cent higher than the 2024 rate of 2.03. This was primarily due to an increase in time-loss claims in health care and social services, and in transportation and related services. The result was partially offset by a reduction in time-loss claims in the general construction sector.

Looking ahead

The annual report notes that WorkSafeBC is seeing continued economic uncertainty, upward claim-cost pressures — particularly for psychological injury and chronic pain claims — and a reduction in the surplus.

At the same time, B.C. businesses and workers continue to face challenges, including the impacts of trade tensions, geopolitical factors, and monetary policy. These challenges can affect return-to-work outcomes for workers, and WorkSafeBC’s financial results and funding level could also be impacted by the volatility being seen in global investment markets.

If these trends continue, there will be cost pressures that could lead to increased premium rates in the near future. WorkSafeBC will continue to closely monitor these cost pressures and keep rates as stable as possible for employers.

The Workers Compensation Act requires WorkSafeBC to ensure that the workers’ compensation system is financially viable. This ensures there is sufficient funding for compensation benefits, administration costs, regulatory duties, and prevention inspections — as required by its mandate.