NSW workers’ compensation premiums will increase by the maximum allowed 8% average next financial year, icare confirmed today.

The additional revenue will help icare's nominal insurer scheme return to a break-even level of funding, following a period between 2012 and 2020 when average premium rates did not increase, a spokesman says.

“Workers’ compensation schemes across Australia are responding to inflationary pressures, higher numbers of complex claims, and investment volatility,” he said. “icare’s average premium increase of 8% responds to economic realities and ensures a strong and sustainable workers’ compensation scheme for more than 320,000 employers and 3.5 million workers across NSW.”

In April last year the government directed icare to limit average premium increases to 8% for three financial years after businesses protested about a potential 20% jump.

Premiums for individual employers may vary from the average, with the final rate calculated according to industry, claims history, safety performance and other risk factors.

“Employers with a higher-risk workplace should consider how, in any given year, an increase above the average rate might be sought in response to a growth in injury claims,” the spokesperson said.

“Similarly, lower-risk workplaces may receive a premium increase below the 8% average, rewarding measures by an employer to improve their workers’ safety and reduce claims.”

icare says support is available to employers seeking to lower their premium, with discounts of up to 5% for upfront payment and rewards for safer employers.