WSIB Rebate: A $2B Boost for Ontario Employers - HR Insights

This fall, Ontario employers are set to receive a significant financial boost. Specifically, the Workplace Safety and Insurance Board (WSIB) has announced it will distribute a $2 billion surplus rebate to eligible businesses, providing a welcome injection of capital amidst ongoing economic pressures. For HR managers and business owners, this isn’t just a refund—it’s a strategic opportunity.

In fact, this financial relief, which stems from the WSIB’s strong investment returns, offers a chance to reinforce the foundations of your business. Therefore, let’s explore what this rebate means for your company and how you can leverage it for long-term success.

What is the WSIB Surplus Rebate?

The WSIB exists to promote workplace health and safety, support injured workers, and provide a no-fault collective liability insurance system for employers. When the WSIB’s insurance fund grows beyond the level required to cover all current and future obligations, the board declares a surplus.

Thanks to strong financial performance, the WSIB is now in a position to return $2 billion to the Ontario businesses that fund the system. This Fall 2025 distribution follows a similar rebate earlier in the year, reflecting a continued commitment to putting money back into the hands of safe employers. Consequently, the WSIB will deliver the rebate as a credit to eligible employer accounts starting in October 2025.

Is Your Business Eligible?

While the news is positive, the rebate is not automatic for every business. The WSIB has outlined specific criteria to ensure it rewards employers with a demonstrated commitment to health and safety.

To qualify for the Fall 2025 rebate, a business must:

Have an active WSIB account with premium payment obligations as of May 1, 2025.
Have paid WSIB premiums in 2024.
Maintain a solid safety record, with no convictions under the Workplace Safety and Insurance Act or Occupational Health and Safety Act in 2024 or 2025.
Not have had a traumatic workplace fatality attributed to the organization during that same period.

Ultimately, these eligibility requirements underscore a crucial point: good safety is good business. Companies that prioritize the well-being of their employees are the first to be rewarded.

How the 2025 WSIB Rebate Impacts Your Business

For an eligible business, the 2025 WSIB rebate will be substantial. The WSIB calculates your rebate amount as approximately 61% of the premiums you reported and paid in 2024. Furthermore, there is no maximum cap on the rebate amount an individual business can receive.

“This surplus distribution is a direct result of safer workplaces and strong financial stewardship. It’s a chance for employers to reinvest in their most valuable asset: their people.”

This influx of capital can be a game-changer, particularly for small and medium-sized enterprises. The key, however, is to think strategically about how to use these funds. Instead of simply absorbing it into general revenue, you should consider how to use it to create lasting value, reduce future costs, and strengthen your workforce.

3 Strategic Ways to Use Your Rebate

Think of the 2025 WSIB rebate as an opportunity to invest, not just a refund to be spent. Here are three strategic areas where these funds can make a significant impact.

1. Reinvest in Health & Safety Programs

First, the surest way to lower future WSIB premiums and ensure eligibility for future rebates is to double down on safety.

Upgrade Equipment: Invest in new machinery or ergonomic equipment that reduces the risk of injuries.
Enhance Training: Go beyond basic compliance. For instance, you could fund advanced training like Joint Health and Safety Committee (JHSC) certification, mental health first aid, or specialized training for high-risk tasks.
Conduct a Safety Audit: Hire a third-party consultant to perform a comprehensive safety audit. This will help you identify hidden risks and opportunities for improvement before they lead to incidents.

2. Address Critical Workforce Needs

Additionally, you can use the funds to improve employee well-being and retention—key drivers of a productive and safe workplace.

Mental Health Support: Expand your employee assistance program (EAP) or introduce new mental health resources and workshops. After all, a psychologically safe workplace is a physically safe one.
Training & Development: Invest in upskilling or reskilling your employees. A more competent and confident workforce is certainly less prone to errors and accidents.
Recognition Programs: Launch or enhance a program that rewards employees for safe work practices and proactive safety contributions.

3. Strengthen Your Financial Foundation

Finally, the rebate can also provide crucial breathing room and stability for your business.

Pay Down Debt: Use the funds to pay down high-interest business debt, which will free up future cash flow.
Build a Contingency Fund: Set the money aside in an emergency fund to cushion against future economic uncertainty.
Offset Rising Costs: Apply the funds toward other rising operational costs, such as inflation-driven increases in supplies or utilities, without having to pass those costs on to customers.

What Ontario Employers Should Do Next

The 2025 WSIB rebate presents a valuable opportunity, but it requires proactive planning. Here are three steps to take right now:

Confirm Your Eligibility: First, log in to your WSIB online account to review your safety record and ensure all your reporting and payment obligations are up to date. While the official eligibility date has passed, maintaining a clean record remains crucial.
Calculate Your Estimated Rebate: Next, look at your total WSIB premiums paid for the 2024 calendar year. Your rebate will be approximately 61% of that amount, giving you a figure to begin planning around.
Develop a Strategic Plan: Lastly, meet with your leadership and HR teams to decide how you will use the rebate. Be sure to align the investment with your company’s strategic goals, whether they are focused on safety, employee retention, or financial stability.

By treating this rebate as a strategic asset, Ontario businesses can turn a welcome refund into a lasting investment in a safer, more resilient, and more productive future.

Need help navigating HR changes? Book your free HR audit today or speak with our team about how Divino can support your business.