WorkplaceNL Announces 2024 Assessment Rate and MCAE Increase
WorkplaceNL has announced that effective January 1, 2024, the average assessment rate paid by employers will increase by 2.4% to $1.73 per $100 of assessable earnings. According to WorkplaceNL, this increase is attributable to rising claims costs, including from wage-loss benefits and health care services for workers, primarily due to inflation.
For the sixth consecutive year, WorkplaceNL has provided employers a discount of $0.21 on their assessment rate, despite the Statutory Review recommending no rate discount be provided until such time as the Income Replacement Rate has increased to 90%. As per WorkplaceNL’s internal policies, this discount will be maintained until their current funded ratio, 116.2% as of 2022, reaches their target of 110%.
While the average rate is $1.73, employers’ individual rates will vary based on their industry group’s claims experience as well as their own. Notably, industries which will see an increase include Health and Social Services; Provincial and Municipal Government Services; Accommodation Services; Food and Beverage Services; and Sawmill and Planing Mills. Industries which will see a decrease include Fishing; Logging; and Manufacturing.
This assessment rate increase represents the first time the average assessment rate has risen in more than a decade.
WorkplaceNL has announced the Maximum Compensable and Assessable Earnings (MCAE) will increase by 5.6 per cent to $76,955 for 2024. The MCAE is the maximum amount of earnings an employer will pay assessments on per worker. MCAE is adjusted each year based on the average federal Consumer Price Index from July-June.
Despite this increase, as of 2023, NL provided injured workers one of the lowest benefits compared to other provinces, with only PEI and NS providing less.
The NLFL will continue to advocate for a workers’ compensation system that puts workers first. This includes calls for:
- An increase to the Income Replacement Rate to 90% as per the Statutory Review;
- An increase to the Maximum Compensable and Assessable Earnings; and
- The introduction of an Occupational Health Clinic.