Employers in Ontario will pay a lower average workers' compensation premium next year. The Workplace Safety and Insurance Board (WSIB) has set its 2027 average at $1.18 for every $100 of insurable earnings[1]. This year the average stands at $1.23[1]. The lower figure applies from January 1, 2027[2]. The board made the announcement in Toronto on October 22, 2026[1].
What the board announced
The WSIB estimates that the cut keeps $160 million in the provincial economy[1]. In its words, a rate reduction will reach more than 80 percent of businesses[1]. Put the other way, a minority of employers will not see a lower rate, since every business is rated on its own. The board also expects the provincial average to land almost 30 percent under the Canadian average[1].
Seen over several years, premiums have fallen steadily. Back in 2018 the average was $2.35[1]. The province reports that since 2024 it has handed $4 billion in WSIB rebates back to eligible employers with good safety records[2]. In the Health and Safety Excellence program, small firms collect about $9,000 a year in rebates on average[1], while large firms collect about $40,000 a year on average[1].
Why the average is not your rate
The $1.18 figure is a province-wide average across all employers the WSIB covers. It is not the rate for hotels or for building cleaning firms, and it is not a cost per room. What a hotel or a cleaning contractor actually pays depends on the individual rate the WSIB assigns to that business.
Each employer can open its own 2027 rate statement from November 2026, and the WSIB website is the only place to get it[1]. Until that statement is available, any change to labor cost per room is an estimate built on an average that may not fit your business.
What this means for cleaning contracts
For hotel cleaning in Ontario, WSIB premiums sit inside the labor cost of each cleaned room, next to wages and other payroll costs. Contractors who build per-room or hourly prices on payroll costs may see a small shift in that line for 2027. Hotels that clean rooms with their own staff carry the same cost directly.
Whether a contract price should move depends on the contract terms and on the individual rate. This applies only to Ontario employers covered by the WSIB, not to other provinces. Check with your advisor before changing prices or contract clauses.
ARPCLEAN take
What does this mean for housekeeping?
For cleaning contractors
- Rate statement: open your individual 2027 WSIB rate statement online once it is posted in November 2026.
- Cost per room: update the premium line in your labor cost per room with your own rate, not the provincial average.
- Contracts: review any price adjustment clauses in Ontario hotel contracts with your advisor.
For hotels
- In-house staff: check your own 2027 rate statement and update the payroll cost used in housekeeping budgets.
- Supplier pricing: expect contractor pricing for 2027 to reflect individual rates, which differ from business to business.
Bill the hotel and pay the cleaners
Per-room rates, tracked hours, and the invoice that comes out of both.
Staff, minutes per room and cost per room in one calculation.
Calculate cost per room →Sources
- 1WSIB premium rates to be reduced in 2027 as businesses face trade uncertaintyWorkplace Safety and Insurance Board (WSIB) ·
- 2WSIB cuts average premium rate for 2027Canadian HR Reporter
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About this story
ARPCLEAN Editorial
Archie Grey is the pen name of the ARPCLEAN editorial team for English-language news. This story was prepared with AI assistance, checked against the linked sources and approved by our editors before publication. Spotted a mistake? Write to [email protected].
No corrections since publication.
