Glossary · PA Workers' Comp

Manual Premium

The base workers' comp premium calculated from payroll × loss cost × LCM, before applying experience modification or other adjustments.

Definition

Manual premium is the initial, unmodified workers' compensation premium calculated by applying the class code rate to your payroll. It represents what every employer in your class code would pay before any individual adjustments are made.

Manual Premium Formula and What Gets Added After

The formula for manual premium in Pennsylvania is: (Annual Payroll ÷ 100) × PCRB Loss Cost × LCM. For example, a landscaper (Code 012) with $200,000 payroll, a loss cost of $4.00, and an LCM of 1.50 would have a manual premium of $12,000.

Manual premium is not your final premium. To get your total estimated cost, you also apply the EMR (experience modifier), add the $350 expense constant, and multiply by 1.0218 for the PA Act 57 assessment.

For large accounts, additional factors may apply including schedule credits or debits, retrospective rating plans, and large deductible structures — all of which modify the manual premium.