WorkCover industry codes decide how much of a labour hire rate goes to workers compensation, and the code is chosen by what your site does, not by what the provider does. In Victoria, WorkSafe says a labour hire employer's premium is calculated using its employer performance rating and the industry rate for each of its on-hire workplaces, and those workplaces are classified to the same industry as the client's workplace. South Australia's ReturnToWorkSA uses the same host-based model.
This guide explains how the code reaches the charge rate, shows the effect with 2026-27 South Australian industry rates, and lists what to tell a provider so the right code is used. Safety duties are a separate question, covered in our guide to WorkCover and labour hire workers on a peak crew.
The provider pays, but your site sets the rate
WorkSafe Victoria's guidance for labour hire employers says the premium is based on each registered client or on-hire workplace. The provider supplies the client's name and workplace address, the WorkSafe agent advises the classification, and the provider registers those workplaces and the remuneration paid there. If an on-hired worker is injured at a registered on-hire workplace, that workplace is included in the employer injury claim report.
In South Australia, ReturnToWorkSA's labour hire model bases premiums on the South Australian Industry Classification codes relevant to the host employer, and labour hire providers use an online search to look up the code and supply host details. Either way, two hosts that use the same provider and the same award can sit under different codes.
What a code does to the cost of an hour
ReturnToWorkSA publishes an industry premium rate per $100 of remuneration for each code. These 2026-27 examples show the spread across sites that use a labour hire crew:
- 360101 General Line Grocery Wholesaling: 2.835%
- 360501 Fruit and Vegetable Wholesaling: 4.160%
- 114001 Fruit and Vegetable Processing: 4.067%
- 111106 Meat Processing: 7.209%
- 117401 Bakery Product Manufacturing (Non-factory based): 1.518%
Apply those rates to one weekday hour for a Storeworker grade 1 casual under the Storage Services and Wholesale Award, where pay is $33.85 and super is $4.06, a $37.91 base. This is an illustration that assumes the premium is charged on pay plus super, and the insurer's own definition of remuneration governs. The WorkCover line would be about $1.07 at general line grocery wholesaling, $1.58 at fruit and vegetable wholesaling, $2.73 at meat processing and $0.58 at non-factory bakery manufacturing.
On a crew that works 1,000 hours a week, the 50 cent difference between the two wholesaling codes is about $500 a week. The gap between meat processing and non-factory bakery manufacturing is about $2.16 an hour. The provider's actual premium also depends on its own claims history and size, so these figures show direction, not a quote.
Two hosts, one provider, two WorkCover lines
Suppose one provider supplies a 20-person crew, 38 hours a week, to two South Australian sites that both use the Storage Services and Wholesale Award at grade 1 casual rates. Site A is a fruit and vegetable wholesaler under code 360501 and site B is a general line grocery wholesaler under code 360101. On the $37.91 wage base, the WorkCover line is about $1.58 an hour at site A and $1.07 at site B. Across 760 hours a week that is roughly $1,200 against $813, a difference of about $380 a week, from classification alone.
ReturnToWorkSA lists its rates per $100 of remuneration and notes that 10% may be added for GST, so the hourly figures here are shown before GST. The same award, the same pay rate and the same provider can therefore produce different charge rates, which our guide to why quotes differ for the same role covers alongside the other causes.
Why the code is not a measure of risk
ReturnToWorkSA says an industry premium rate is calculated each year from the claims cost performance of all businesses classified in that industry, and is not necessarily linked to the perceived risk involved for workers in it. A low-risk-looking site can sit in a code with a high rate, and the reverse. The classification comes from the predominant business activity at the location.
That is why a rate card line labelled WorkCover can differ between two hosts on the same award. If a provider's WorkCover figure looks high or low against another quote, the first check is the code and the second is the rate for that code, not the provider's margin.
What to tell a provider so the right code is used
- What the site does. Describe the predominant activity, for example grocery wholesaling, fruit and vegetable processing or food manufacturing.
- Where the workers will be. Give the workplace address, because Victoria registers on-hire workplaces by address or in an aggregate.
- Any change in activity. ReturnToWorkSA asks employers to advise changes in business activity because they can change the classification and the rate.
- Which code and rate the quote uses. Ask the provider to name them so you can check the line against the published rate.
The WorkCover line sits beside payroll tax and super on a rate card, and our guide to payroll tax in labour hire covers the state rates for that line. Our guide to comparing labour hire quotes shows how to line the assumptions up.
A note on Victoria
WorkSafe Victoria sets industry rates each year in the Premiums Order, and the 2026-27 rates are published in Special Gazette S 284, with the employer's own performance rating applied to that rate. This guide uses South Australian rates in its examples because the full code list is public and easy to check, and it does not quote a Victorian rate. Ask the provider for the WorkSafe classification it has registered for your site.
Related Resources
- WorkSafe Victoria on labour hire premiums
- WorkSafe Victoria industry rates and key dates
- ReturnToWorkSA on labour hire and group training
- ReturnToWorkSA industry premium rates 2026-27
- WorkCover and labour hire workers on a peak crew
- how to compare labour hire quotes
- payroll tax in labour hire pricing
Common Questions About WorkCover Industry Codes and Labour Hire
1. Do labour hire workers add to my WorkCover premium?
The provider pays the premium for its workers, and WorkSafe Victoria says it is based on the provider's performance rating and the industry rate of each on-hire workplace. The cost reaches you through the charge rate, not as a separate bill.
2. Which industry code applies to a labour hire worker?
In Victoria and South Australia the classification follows the host's workplace, so the code that applies is the one for your site's activity, not the provider's own business.
3. Why do two providers show different WorkCover lines for the same role?
Common causes are a different code, a different claims history or a different assumption about the wage base. Ask each provider to name the code and the rate used.
4. Is the industry rate a measure of how dangerous the work is?
Not necessarily. ReturnToWorkSA says the rate is based on the claims cost performance of all businesses in the industry and is not necessarily linked to the perceived risk of the work.
5. Does the WorkCover cost change the host's safety duties?
No. The cost sits with the provider, but safety duties are separate. Our guide on WorkCover and labour hire workers on a peak crew covers who carries what.
Tell the Provider What the Site Actually Does
The WorkCover line follows your site's classification, so the quote is only as accurate as the description behind it. Name the activity and address, ask for the code and rate the provider has used, and check the figure against the published rate. Chandler Personnel provides Melbourne labour hire and permanent recruitment, and you can send your site details through the request staff form.
