How Much Does Workers Compensation Cost in Pennsylvania?

Workers' compensation insurance in Pennsylvania typically costs between $0.50 and $15+ per $100 of payroll, depending on what industry you're in. For a business with $100,000 in annual payroll, that translates to roughly $500 to $15,000+ per year.

The wide range isn't arbitrary — it reflects the real difference in injury risk between a desk-based accounting firm (Code 953: $0.09/cwt) and a roofing crew (Code 551: $10+/cwt).

The Core Formula

Pennsylvania workers' comp premium is calculated as:

Loss Cost is the PCRB-filed rate per $100 payroll for your industry. LCM is your insurer's markup (typically 1.20–1.80 in PA; 1.50 is a common midpoint). EMR is your experience modifier based on your claim history (1.00 = average).

Estimated 2026 Costs for Common PA Industries

The table below shows estimated annual premiums for a business with $100,000 annual payroll, using LCM 1.50 and EMR 1.00.

What Drives Your Premium Up or Down

1. Your Industry (Class Code)

This is the single biggest factor. A landscaping contractor (Code 012, ~$2.49/cwt) pays roughly 25× more per dollar of payroll than a clerical office worker (Code 953, ~$0.09/cwt). Getting the right class code — and splitting payroll between codes when employees do multiple types of work — can make a significant difference.

2. Your Experience Modifier (EMR)

After 3 years of coverage, the PCRB calculates your EMR by comparing your actual claim costs to expected costs for businesses your size and type. An EMR below 1.00 reduces your premium; above 1.00 increases it. A 1.30 EMR on a $10,000 base premium adds $3,000/year.

The most effective way to control your EMR: invest in safety, implement a return-to-work program, and manage claims proactively.

3. Which Insurer You Choose (LCM)

Every insurer files their own LCM. Competitive carriers often file 1.20–1.40 for preferred classes; specialty carriers for high-hazard classes may file 1.60–1.80. Shopping multiple carriers — especially ones that specialize in your industry — is the easiest way to reduce premium without changing your risk profile.

4. Your Employer Liability Limits

PA workers' comp policies include Part 2 (employer liability) coverage. The basic limits (100/500/100) are included in the base price. Higher limits (up to 2000/2000/2000) add a surcharge of up to 2.2% of your manual premium.

How to Get the Best Rate

1. Use our calculator first — understand your estimated cost before you shop
2. Verify your class codes — ensure employees are classified to their actual primary duties
3. Get quotes from 3+ carriers — LCMs vary widely; shopping is worth the effort
4. Review your EMR — if it's above 1.00, create a loss control plan
5. Consider a PEO — Professional Employer Organizations can sometimes access better LCMs for small businesses