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WorkCover Internet > Insurance and premiums > Premiums > Calculating premiums > Industry classification rates

Industry classification rates 

All employers with a NSW workers compensation policy are allocated to a WorkCover Industry Classification (WIC) based on the nature of their business. When an employer applies for a workers compensation policy they are required to give details of their business activities. 

In most cases, an employer is allocated to a single WIC class for premium calculation purposes. The employer is allocated to the WIC class that most accurately describes the entire business of the employer, and all the wages paid by the employer are subject to the premium rate for that class. For example, an employer who manufactures automotive components will be classified under 'automotive component manufacturing', though some of the employees undertake office and sales activities associated with the employer’s main business. 

Some employers may be allocated to more than one industry class if they undertake two or more separate and distinct businesses. However, support services such as clerical, administrative, sales and marketing, head office and warehousing activities are generally considered to be incidental to the main business activity. 

Each WIC class is allocated a rate, expressed as a percentage. WIC rates are an indication of the risk level of the particular industry group and are based on five years' of claims and wages data of all the employers in the group. 

WorkCover Industry Classifications and rates are contained in Table A of the Insurance Premiums Order. Table B of the Insurance Premiums Order arranges WIC classifications into 17 broad industry divisions. Each WIC class sets out the types of business activities that are included and, where relevant, activities which are excluded and covered by other classes. 

It is important that an employer provides their Scheme Agent with accurate information about their business activities to make sure their business is correctly classified. An employer must also notify their Scheme Agent of any changes in their business that may affect the classification. If an employer thinks their business may be wrongly classified they should initially talk to their Scheme Agent. 

Call 13 10 50 for more information.