What is Workers compensation premium?
Payroll & people. A plain-English definition for Australian business owners.
A workers compensation premium is the amount a business pays its state or territory scheme, or licensed insurer, for mandatory workers compensation cover.
Premiums are generally calculated against declared wages and the current rate for the business's industry classification, adjusted in many schemes for the business's own claims experience. Each year the employer declares actual and estimated remuneration, and the premium is reconciled against it. Under-declaring wages or misclassifying the business's activities can trigger back-premiums and penalties, so the annual declaration deserves the same care as a tax lodgement.
In a connected back office this sits with the People hub, where Valont runs award compliance, hr & ir advisory and employer advice line for Australian SMEs as one team. The full definition set is on the glossary.
Talk to an Advisor
General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.