Workers compensation premium increases for 2025-26

icare has confirmed the average rate of workers compensation premiums in NSW will increase by 8 per cent in the 2025-26 financial year. This is the final financial year where the 8 per cent cap will apply. 

It’s important to note that while the 8 per cent cap applies to premiums overall, individual employers’ premiums may vary from the 8 per cent average as the premium charged is dependent on a number of factors, including the industry of the employer, the total wages paid, the employer’s claims history and safety performance. Employers with a higher risk workplace may have an increase above the average rate. Similarly, lower risk workplaces may receive a premium increase below the 8 per cent average. 

The minimum premium payable for a policy will increase from $225 to $240 for policy renewals in the 2025-26 year.   

Why are premium rates increasing? 

The premiums icare collect go directly towards helping injured workers. To ensure the NSW workers compensation scheme remains sustainable, premiums are priced accordingly. 

Premiums are mainly increasing because of: 

• an increase in psychological claim volumes
• increases in weekly benefits and medical costs
• a growing number of claims reaching higher whole person impairment (WPI) levels. 

How to lower your workers compensation premium 

Pay in full by the due date 

Small employers who choose to pay the full amount by the due date will receive a 5 per cent premium discount.  

Safe Employer Reward (SER) 

An additional 7.5 per cent premium discount incentive is available for employers who have a good safety record under the SER. 

From 30 June 2026, an additional requirement has been added to receive the SER premium discount. For all small and experience rated policies, employers will need to submit the most recent actual wages declaration within four months of the policy period ending. This means the first policies impacted are those renewing on and after 30 June 2026. Employers that meet the performance criteria but have outstanding wage declarations will not receive the SER. 

Visit icare for more information on declaring wages. 

Further details of incentives, discounts and other adjustments, visit icare's How to lower your workers insurance premium page. 

Support for small businesses 

icare provides special guidance for small businesses, to encourage safer workplaces and reduce the risks and practices that drive up premiums. Visit the icare’s Small business hub for more information.