Canadian small businesses could receive nearly $5 billion in financial relief if seven workers’ compensation boards return surplus employer funds currently sitting above their own contingency thresholds, according to new research from the Canadian Federation of Independent Business.
Boards in British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Prince Edward Island, Quebec and the Yukon are in an overfunded position. For a typical small business with five employees, rebates could total over $4,800 in New Brunswick, $3,631 in British Columbia and $3,652 in Yukon.
Recent surplus returns
Several boards have returned surplus funds to employers in recent years. Manitoba returned $115 million in 2024 and $122 million in 2025, while Yukon returned $10 million in 2024. New Brunswick is returning $53 million in surplus funds in 2025.
Ontario returned $4 billion in 2025 and remains the only province to legislate the return of workers’ compensation board surplus funds to employers, including mandatory rebates when the Workplace Safety and Insurance Board’s funding level reaches at least 125 per cent.
Eight of 12 boards across Canada have a policy to return funds to employers: Yukon, Northwest Territories/Nunavut, Alberta, Manitoba, Ontario, New Brunswick, Prince Edward Island and Newfoundland and Labrador.
Calls for predictable returns
“While strong funding is essential to support injured workers, it’s not fair when boards hoard billions in surplus funds — that by their own definitions are above and beyond the high end of their contingency thresholds — without a clear plan to return them to businesses who pay directly into WCBs,” said Bradlee Whidden, CFIB’s senior policy analyst for Western Canada.
“At a time when small firms are facing high costs and significant economic uncertainty, a direct rebate would provide immediate cost relief, allowing business owners to invest in workplace safety, increase wages and benefits, or hire more staff,” said Whidden.
CFIB recommendations
The organization recommends that workers’ compensation boards return surplus funds to employers or lower premiums where funding ratios exceed targets, legislate the return of surplus funds, and implement mandatory distribution policies.
“Small businesses need predictability. Returning rebates to eligible employers would come at no cost to taxpayers, and it wouldn’t jeopardize the boards’ funding positions,” said Kalith Nanayakkara, CFIB’s senior policy analyst for British Columbia.
CFIB also recommends that boards enhance transparency by setting dates to publicly release funding levels.
