Glossary · PA Workers' Comp

Experience Modifier (EMR / MOD)

A multiplier based on your business's actual claims history compared to the expected claims for your industry, applied to your workers' comp premium.

Definition

The Experience Modification Rate (EMR), also called the "experience mod" or "MOD," is a factor calculated by the PCRB that reflects your individual business's workers' compensation claims history relative to what would be expected for a business of your size in your industry.

How the EMR Is Calculated and How to Improve It

An EMR of 1.00 means your claims history matches the expected average exactly — your premium is unaffected. An EMR of 0.85 means your claims are 15% below average — you get a 15% discount. An EMR of 1.25 means your claims are 25% above average — you pay a 25% surcharge.

The EMR is calculated by the PCRB using 3 years of your claims history, typically the 3 years ending 1 year prior to the policy period. This lag means claims from 3–5 years ago are affecting your current premium.

The EMR is one of the most powerful levers available to PA employers for controlling workers' comp costs. A proactive return-to-work program and aggressive claims management can meaningfully reduce an elevated EMR within 2–3 policy years.

Employers must have sufficient payroll (typically $10,000+ in annual premium at manual rates) to be eligible for EMR rating. Smaller employers are not rated individually — they pay the class-code manual rate without an EMR modification.