©Keith Gosse file photo/The Telegram
The reduction in the Workers’ Compensation rate paid by employers will put $11 million back into the economy, says the Newfoundland and Labrador Employers’ Council.
Workplace NL announced Monday that the average premium charged to employers will be reduced by six per cent, to $2.06 from $2.20 per $100 of payroll.
The savings to businesses will help employers create jobs and make investments, the NL Employers Council stated in a news release.
“This reduction in this Workplace NL employer payroll tax is a small sigh of relief for employers, many of whom are struggling right now,” stated council executive director Richard Alexander. “On top of an economic slowdown, government has increased taxes and fees dramatically and recently announced minimum wage increases. This all makes it harder for employers to maintain jobs in our province.”
Decreased workplace injury rates enabled Workplace NL to cut the Workers’ Compensation rate paid by employers, the council stated, but Newfoundland and Labrador’s rate is still higher than the national average, which is $1.69 per $100 of payroll, and is third-highest in the country, after Nova Scotia and Ontario.
The council will continue to lobby for further reductions, the news release stated.