Experience rating - making ACC work levies fairer for businesses and organisations
On 1 April 2011, ACC introduced experience rating - a system of modifying a business’s ACC work levy based on its claims history.
Historically, the work levy has been based on injury rates across industry categories. A business has paid the same work levy as others operating in the same industry, despite differences in their safety record.
Experience rating rewards those business owners with safer workplaces, and encourages a focus on improving workplace safety and making New Zealand businesses better places to work.
How does experience rating work?
Experience rating takes into account a business’s ACC claims history when setting its levies. Under the experience rating framework, employers who have lower-than-average injury rates, with better-than-average rehabilitation or return to work rates, may receive a discount on their ACC work levy. Those with worse-than-average claims experience may receive a loading on their levy.
Experience rating helps make levies fairer because what a business pays will more accurately reflect the safety performance in the workplace. It also encourages a focus on:
- injury prevention in the workplace
- helping injured employees return to work as safely and quickly as possible.
Experience rating calculation
Experience rating is applied in two different methods based on your levies:
- experience rating programme
- no-claims discount programme.
For more information on experience rating visit: http://www.acc.co.nz/for-business/experience-rating/index.htm