As a Category B employer ie an employer whose basic annual tariff premium is $3000 or less, you are not affected by the cost of claims on your policy.
However, if the annual tariff premium exceeds $3000 in the next two years (ie you become a Category A employer), perhaps due to an increase in wages or increase in the rate, the cost of claims in the previous years may affect your premium.
As a Category A employer (ie an employer whose annual basic tariff premium exceeds $3000), the cost of claims will be used in the calculation of your premium. This is worked out using a formula, taking into account your wages and the cost of your claims.
Employers who have nil claims will receive a reduction of premium while employers who have high claims cost pay more. For a full explanation, you can go through your premium calculation sheets with your insurer.
This scheme encourages employers to have safe work practices and maintain a safe workplace so that injuries at work will