Nova Scotia is planning to raise benefits for injured workers in 2027, bringing rates in line with the rest of the country, while simultaneously cutting the premium it charges employers.
Karen Adams, CEO of the Workers’ Compensation Board of Nova Scotia, said the changes are possible because the system is now in good financial health, after three decades of being underfunded.
“WCB is finally on the right path,” Adams told reporters at a briefing Thursday.
“Thousands of Nova Scotians will see their benefit cheques increase to keep up with inflation.”
The cost-of-living adjustment will go up from 50 per cent to 100 per cent of the consumer price index, to a maximum of three per cent per year.
Adams would not say how much employer rates will go down.
“We believe that continuing to be financially responsible and not over-promising a number at this stage is the right thing to do,” she said, adding that the rate cut will be “meaningful.”
She said neither rate will change for more than a year, taking effect at the start of 2027, for the sake of “financial prudence.”
Nolan Young, Nova Scotia minister of labour, skills and immigration, pictured on Sept. 25, 2025. (Dave Laughlin/CBC)
The changes are laid out in a bill tabled Thursday by Nolan Young, minister of labour, skills and immigration, to amend the Workers’ Compensation Act.
“Today’s announcement is great news for workers and their families, for employers and for the workers’ compensation system,” he said.
The bill also expands presumptive cancer coverage to include wildland firefighters and fire investigators, bringing them in line with municipal firefighters. It extends the appeals period from 30 to 90 days and requires employers to report a workplace injury in two days rather than five, among other changes.
Labour federation questions employer rate cut
The Nova Scotia Federation of Labour applauded the boost to rates for injured workers and the expansion of cancer coverage, but said it’s not the time to cut rates for employers.
“For decades, injured workers have borne the brunt of an underfunded system,” federation president Danny Cavanagh said in a news release.
“Before employers see any relief, the priority must be ensuring that benefits are fair, accessible and sustainable for people who are hurt on the job. Workers should not have to worry about whether financial sustainability is being sacrificed for the sake of lower employer costs.”
Cavanagh said 26 per cent of Nova Scotia workers are not eligible for coverage and “universal coverage must be the goal.”
Adams said she believes increasing worker benefits and decreasing employer rates are sustainable in part because worker injuries are down.
“Employers, workers [and] safety associations are rallying around making sure workplaces are safer, reporting is better, safety standards are better,” she said.
Last year, a report commissioned by the province found the workers’ compensation system needed a drastic overhaul.
Adam said she believes these changes are a first step toward more improvement.
Going at ‘snail pace’
The Canadian Federation of Independent Business responded to the announcement with disappointment.
Louis-Philippe Gauthier, the group’s Atlantic vice-president of advocacy, said in a statement that employers need predictability on premiums.
“[The Workers’ Compensation Board] must operate at the speed of business. Not at the snail pace of government,” he said.
With the insurance system fully funded, Gauthier said the board should eliminate a surcharge for employers starting next year.
“Workers’ compensation premiums in Nova Scotia remain the highest in the country,” he said. “This reality of the last 20 years continues to impose a structural cost burden as well as a competitive disadvantage on small businesses across the province.”