Calgary, December 3, 2025 – The Workers’ Compensation Board’s (WCB) decision today to provide a $0.05 rate subsidy for 2026 is welcome relief for Alberta’s small businesses. The average employer premium rate will increase from $1.41 to $1.46, $0.05 lower than the required rate of $1.51. While the 2026 increase seems trivial, all cost increases are challenging for businesses who are facing a shortage of working capital.
“Any increase is difficult for employers already facing rising costs, trade disruptions, and strikes, but CFIB is glad to see a continued rate subsidy to help offset costs in 2026” said Kayode Southwood, CFIB’s Senior Policy Analyst for Alberta. “WCB’s use of close to two billion in premium subsidies since 2018 prevented an even steeper hike—but the reality is that costs continue to climb for small businesses.”
Insufficient demand remains the top barrier to growth for over half (51%) of Alberta businesses heading into the holiday season. After a year navigating an uncertain business environment, rate stability is welcome. CFIB appreciates WCB acknowledging that small businesses make up 85% of all WCB-Alberta accounts. CFIB’s research shows Alberta small businesses would use a reduced WCB fee burden to increase employee compensation (60%), pay down debt (59%), and expand their operations (54%).
The 2026 adjustment is intended to maintain the sustainability of Alberta’s workers’ compensation system, and moves WCB closer to its target funding range between 114% and 128% of total liabilities. WCB’s current policy states “the amount in excess of 128% may be paid out to employers in the form of a surplus distribution.” This means that Alberta’s small businesses will be eligible to receive the surplus funds paid into the system in the event WCB exceeds its funding target in the future.
“CFIB will continue working with WCB to ensure small businesses have access to a predictable and affordable system that benefits everyone—employers, workers, and the broader economy,” concluded Southwood. “As WCB moves to its target funding range, we will ensure future surplus funds are returned to small businesses, as that money would belong to the businesses who pay into WCB.”
For media enquiries or interviews, please contact:
Kayode Southwood, CFIB
403-489-7595
Kayode.Southwood@cfib.ca
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 100,000 members (10,000 in Alberta) across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
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