In the 2025/26 financial year, workers compensation premiums in NSW will increase by an average rate of 8%.

The increase is in line with direction from 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).

The increase will help the Nominal Insurer scheme cover rising claims costs to 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 NSW.

Premium rates across industry

Individual employers’ premiums may vary from the 8% average, and is dependent on factors such as industry, claims history, safety performance, and other risk factors. Support is available for businesses and employers looking 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%. To find out more about the Workers Compensation Industry Classification (WIC) rates for each industry, visit the icare website.

Key changes for FY2025-26:

  • 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, from 30 June 2026 Safe Employer Reward (SER) eligibility will be expanded to include the requirement of all employers to submit their actual wages declaration form within four months of their policy period expiring. The first policies impacted are those renewing on or after 30 June 2026, which provides employers time to prepare, understand their obligations, and declare wages at the completion of each policy period. Employers that meet the performance criteria but have outstanding wage declarations will not receive the SER. Learn more about the SER, including how to submit wage declarations, on the icare website.
  • If you are a large employer, that meets specific criteria, you may be eligible for one of icare’s Loss Prevention and Recovery (LPR) products. From FY2025-26, an enhanced formula will be introduced to the LPR minimum premium. This means employers with the best health and safety performance pay lower minimum premiums to better reflect their risk.

Steps employers can take

Declaring actual wages is an important step for delivering greater fairness and accuracy in premium calculations, and all employers are encouraged to do it. You can find more information on wage declarations on the icare website.

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 SER 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%. In addition, an SER of up to 7.5% is also 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. icare provides guidance to support experience rated employers in understanding premium calculations and how to lower premiums via webinars, training and face to face educational forums delivered by our Mobile Engagement Team.

Visit How to lower your Workers Compensation insurance premium for more information.

More information about premiums

For more detailed information on premiums, including frequently asked questions go to  Premium updates for 2025-26