Ontario’s average Workplace Safety and Insurance Board premium rate will fall to $1.18 per $100 of insurable earnings in 2027, down from $1.23 in 2026. For an employer with $1 million of insurable payroll paying exactly the provincial average, that is a calculated saving of $500 for the year.
The change does not mean every Ontario employer will pay $1.18. The WSIB sets an individual rate for each business based on its class and claims experience. Employers will be able to see their own 2027 rate statement online starting in November 2026.
There is a second number for payroll teams to update: the maximum insurable earnings ceiling rises to $126,700 in 2027 from $121,700 in 2026. That ceiling determines how much of each worker’s annual earnings is included when an employer calculates WSIB premiums.
The province-wide average falls by about 4.1%
The five-cent decrease works out to a 4.1% reduction in the average rate. The table shows the change and what it means at several payroll sizes, assuming the employer pays the province-wide average in both years.
| Annual insurable payroll | 2026 at $1.23 | 2027 at $1.18 | Calculated saving |
|---|---|---|---|
| $250,000 | $3,075 | $2,950 | $125 |
| $500,000 | $6,150 | $5,900 | $250 |
| $1,000,000 | $12,300 | $11,800 | $500 |
| $5,000,000 | $61,500 | $59,000 | $2,500 |
These examples are PaycheckGuru calculations, not quotes for a particular business. An employer’s actual saving may be larger, smaller or nonexistent because its individual rate can move differently from the provincial average.
The WSIB says more than 80% of Ontario businesses will receive a rate cut. It estimates that the province-wide reduction will leave $160 million with employers in 2027.
The basic calculation is:
Insurable payroll ÷ 100 × your WSIB premium rate
For example, an employer with $640,000 of insurable payroll and a 2027 rate of $1.50 per $100 would calculate an annual premium of:
$640,000 ÷ 100 × $1.50 = $9,600
Use the rate on the employer’s own 2027 statement, not the $1.18 average, when preparing a payroll budget. The average is useful for understanding the province-wide direction, but it is not a substitute for the assigned rate.
The $126,700 ceiling limits insurable earnings per worker
The 2027 maximum insurable earnings ceiling is $126,700, an increase of $5,000 or about 4.1% from 2026. The WSIB says the ceiling is linked to changes in average earnings in Ontario under the Workplace Safety and Insurance Act.
If an employee earns $150,000 in 2027, the employer generally includes no more than $126,700 of that employee’s earnings in the premium calculation. If an employee earns $80,000, the full $80,000 is below the ceiling.
At the new average rate, the premium on one worker earning at least the ceiling would be about $1,495.06 for 2027. At the 2026 average rate and ceiling, the comparable amount is about $1,496.91. That comparison is illustrative because a real employer must apply its own rate and the WSIB’s rules for deciding which payments count as insurable earnings.
This is an employer cost, not a paycheque deduction
WSIB premiums are paid by covered employers. They are not an amount an employer should deduct from an employee’s pay. The change therefore affects an employer’s payroll cost and budgeting, not a worker’s net pay in the way that CPP2 or EI premiums do.
The insurable-earnings ceiling is also separate from an employee’s salary entitlement. It caps the earnings used for premium purposes. It does not cap wages, vacation pay or other employment standards entitlements. PaycheckGuru’s province-by-province vacation pay guide explains that separate calculation.
Why an individual rate may not match the average
Ontario’s rate-setting system assigns businesses to a class based on their activities and then considers their claims and insurable-earnings history. The WSIB says 2027 rates use claims and insurable earnings data as of April 30, 2026.
Businesses moving toward a different projected rate will generally move by no more than three risk bands in a year, which the WSIB describes as approximately 15%. It notes that rare cases can produce a different percentage and that the risk-band movement approach does not apply to non-profit organizations.
That makes the individual statement the controlling number for budgeting. Two employers with the same payroll can owe different premiums if their assigned rates differ.
What Ontario employers should do before January
- Confirm online access. The WSIB says 2027 individual rate statements will be available exclusively through its website starting in November.
- Download the statement. Check the assigned rate, business classification and projected rate rather than assuming the provincial average applies.
- Update the payroll ceiling. Set the 2027 maximum insurable earnings amount to $126,700 in the payroll or accounting system.
- Reforecast the annual premium. Apply the assigned rate to expected insurable payroll and account for employees who may reach the ceiling.
- Check classification and payroll inputs. If the business activity or reported insurable earnings appears wrong, contact the WSIB before relying on the estimate.
Employers should also keep the change separate from other 2027 payroll updates. Minimum wage, income-tax withholding, CPP, EI and employment standards rules have their own effective dates and calculations. Ontario’s latest wage-floor change is covered in PaycheckGuru’s October 2026 minimum wage guide.
Sources and calculation note
The confirmed rates, ceiling, statement timing and risk-band information come from the WSIB’s 2027 premium rates page and its October 22, 2026 news release. The Ontario government also published a same-day announcement.
All dollar examples are PaycheckGuru calculations using the published average rates and ceilings. They do not determine any employer’s actual classification, insurable payroll or assigned rate. Information verified October 23, 2026.