New Jersey’s Workers’ Comp Rates by Class Code 2025
Workers' comp costs in New Jersey depend on a few key factors—your industry, your payroll, and your past claims. Below is a breakdown of common class codes and 2025 rates to give you an idea of what to expect.
New Jersey’s Workers’ Comp Rates
How to Calculate your Workers' Comp Costs in New Jersey
Use this simple formula:
Annual payroll / 100 x rate = estimated premium
Each industry in New Jersey is assigned a specific class code with an accompanying rate by the state.
Begin by finding your class code and rate. Once you have your industry’s rate, calculate your company’s annual gross projected payroll, divide that number by $100, and then multiply by your industry rate.
Kickstand Example:
You own an electrical contracting business in New Jersey and employ 4 full-time electricians. Each one earns $19/hour, which adds up to $39,520 annually per worker. That’s a combined payroll of $158,080.
Divide the payroll by 100 = 1,580.8
Multiply by NJ’s electrical wiring rate of $4.01
1,580.8 x 4.01 = $6,339
That’s your estimated annual workers’ comp premium.
Who sets New Jersey’s Workers’ Compensation Rates?
In New Jersey, workers’ comp rates are set by the Compensation Rating and Inspection Bureau (CRIB), with guidance from NCCI. Rates are updated annually and reflect the risks associated with each type of job.
For example:
- NJ Clerical workers have a low rate of $0.14 per $100 of payroll. A clerk earning $40,000/year would cost about $56 annually in workers’ comp.
- Lawn maintenance carries more risk. With a $4.81 rate, an employee making $42,000 would cost around $2,020/year.
- Welding, which involves high risk, is rated at $7.70 in NJ. That’s about $3,234 annually per $42,000 in payroll.
As you can see, job type directly impacts your rates.
Tips to Save on Workers’ Comp in NJ
Looking to control your workers’ comp premiums in New Jersey?
Here are four key ways to keep your costs in check:
Build a Culture of Safety: Focusing on accident prevention not only protects your team but can also improve your Ex-Mod over time, helping lower your rate.
Report Payroll Accurately: Payroll that's too high means overpaying; too low can lead to surprise bills at audit. Stay consistent with clean, current records.
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Implement a Return-to-Work Policy: Offering modified roles for injured employees helps avoid drawn-out claims—and helps your business stay productive.
Check Your Employee Classifications: Make sure every team member is assigned the right code. Errors here are one of the most common causes of inflated premiums.
Secure Workers’ Comp Coverage with Kickstand
Whether you’re just starting your business or reassessing your current policy, Kickstand Insurance is here to help. We make it fast and easy to get the coverage you need, at a price that fits.
Start your quote today and see how much you can save.
Note: The rates listed above have been provided by one of our partner insurance carriers, and were accurate at the time of publishing and for illustrative purposes only and may not reflect actual current rates for workers' compensation insurance in New Jersey at this time. Various factors, such as claim history and business experience can affect the rate as well. Business owners should consult with an insurance agent or the NCCI for accurate and up-to-date rate information.
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
Kickstand Insurance helped a florist cut their workers’ comp premiums by 25%, saving $4,535 a year. Find out how simply asking for a discount makes all the difference.
