PA Workers’ Compensation Insurance Rates 2025: What You Need to Know
Like in all states, Pennsylvania workers' compensation insurance rates are not the same for all businesses. Instead, your rate is influenced by several factors: the industry in which you operate, the size of your payroll, and your claims history.
In Pennsylvania, the National Council on Compensation Insurance (NCCI) sets a base rate for each industry. Insurance carriers then take that base rate and adjust it to get their unique rate that they will offer businesses.
This rate reflects the risk faced by workers in that industry. So, if your employees are more likely to get injured, you’ll have a higher base rate.
To illustrate, let's look at the rates per $100 of payroll for these two industries in Pennsylvania:
- HVAC (Heating and Cooling Service/Repair): $3.17 per $100 of payroll
- Clerical - Office Employee: $0.09 per $100 of payroll
To help you get a ballpark figure of how much you would pay for workers’ comp insurance, here’s a list of common industries in Pennsylvania, complete with rates from one of our partner carriers. We've also provided sample premiums.
PA Workers’ Compensation Insurance Rates
Here’s a list of the state's most common industries and the corresponding rates from one of our partner carriers:
*Premiums are estimated based on a hypothetical $25,000 annual payroll.
How can I calculate my Workers’ Comp Premium?
To calculate an estimate of your workers' compensation premium, use this simple formula:
(Annual Employee Payroll / $100) x Industry Rate = Your Estimated Premium
Payroll: Calculate your total anticipated gross annual payroll for all employees, divide this number by $100, and then multiply it by your industry rate.
Rate: You can find out your rate by consulting with an agent or referring to the chart provided above.
For example, if you run a restaurant with 3 employees, each earning $28,240 annually, your estimated annual premium calculation would look like this:
Restaurant Industry Rate in Pennsylvania: $1.18
Annual Payroll: $84,720 ($28,240 x 3)
Calculation: ($84,720 / $100) x $1.18 = $1,000
This example illustrates that a restaurant with a total annual payroll of $84,720 could expect an estimated workers' compensation premium of approximately $1,000. However, remember this is just an estimate. Your actual premium will also include fees and taxes and may be affected by other factors.
Watch this video to learn more about calculating your workers’ comp rate.
What other factors could affect my Premium?
While the formula provides a basic estimate, several factors can influence the final cost of your premium:
Claims History: Just like with personal insurance, a history of many claims can lead to higher premiums, while a record with few claims could potentially lower your costs.
Experience Modification (ExMod): This is a number that adjusts your premium based on your claims history compared to the average in your industry. A lower number can reduce your premium.
Workplace Safety Programs: Implementing safety programs can not only reduce the likelihood of workplace injuries but may also qualify you for discounts on your workers' comp
What if I need help calculating my Premium?
If you prefer a more convenient method, our instant quote tool is here to help. It provides a quick and easy way to get an estimate that considers the specifics of your business.
For more personalized assistance, our team is ready to answer your questions and provide support. Please contact us at (866) 338-8823. We're dedicated to helping you find the right coverage at a competitive price.
Note: The rates listed provided above have been provided by one of our partner insurance carriers, were are accurate at the time of publishing and for illustrative purposes only and may not reflect actual current rates for workers' compensation insurance in Pennsylvania 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.
