PA Workers Comp Calculator
2026 PCRB Data
How Much Does Workers Compensation Insurance Cost in Pennsylvania?
Complete 2026 guide to PA workers' compensation insurance costs — rates by industry, how each factor drives your premium, and how to calculate your specific estimate.
The Short Answer: $0.50 to $15+ Per $100 of Payroll
Pennsylvania workers' compensation costs vary enormously by industry. A clerical office worker (Code 953) costs about $0.09 per $100 of payroll. A roofer (Code 551) costs $10+ per $100. The difference — more than 100× — reflects real actuarial claims data from the PCRB on Pennsylvania work injury frequency and severity.
For a business with $100,000 annual payroll, total annual costs typically fall in these ranges:
- Low-hazard (clerical, retail, office): $400 – $2,000/year
- Mid-hazard (restaurant, healthcare, janitorial, light manufacturing): $1,200 – $6,000/year
- High-hazard (landscaping, electrical, carpentry, plumbing): $2,500 – $10,000/year
- Very high-hazard (roofing, structural steel, logging, tree trimming): $8,000 – $25,000+/year
What Determines Your PA Workers' Comp Cost
1. Class Code (Industry) — The Biggest Factor
Your PCRB class code determines your loss cost — the per-$100-payroll baseline. Every employee in your business is assigned to a class code based on their actual work duties. Using the correct code (and splitting payroll between codes when employees do multiple types of work) can significantly affect your premium.
2. Annual Payroll
Workers' comp premium scales with payroll. If your payroll doubles, your premium roughly doubles (minus the fixed expense constant, which stays flat at $350). This is why pay-as-you-go policies can be useful for businesses with variable payrolls.
3. Loss Cost Multiplier (LCM) — Your Carrier's Markup
Every PA insurer files their own LCM with the PA Insurance Department. LCMs typically range from 1.20 to 1.80 in the PA market. The same risk can cost 30–40% more at a high-LCM carrier than a low-LCM competitor — making shopping critical.
4. Experience Modifier (EMR) — Your Claims History
After 3 years of coverage, the PCRB calculates your EMR comparing your actual claims to expected losses for businesses your size and type. EMR 1.00 = industry average. An EMR of 0.80 saves you 20% on premium; an EMR of 1.30 adds 30%. A $10,000 base premium becomes $13,000 at EMR 1.30 and $8,000 at EMR 0.80.
5. PA Act 57 Assessment (2.18%)
Pennsylvania mandates a 2.18% state assessment on all workers' comp policies in 2026. This funds the Workers' Compensation Security Fund and other state programs. It's added after all other adjustments and cannot be avoided.
6. Expense Constant ($350)
The PCRB mandates a flat $350 expense constant per policy in 2026. For very small businesses with low payrolls, this can be a significant portion of total premium. At $50,000 payroll in a low-hazard class, the $350 constant may represent 30%+ of total cost.
2026 PCRB Loss Costs
PA Workers' Comp Cost by Industry — 2026 Rate Table
Estimated annual premiums at four payroll levels. Assumes LCM 1.50 · EMR 1.00 · 100/500/100 limits · $350 expense constant · 2.18% PA assessment.
| Industry | Code | Loss Cost | $50K payroll | $100K payroll | $250K payroll | $500K payroll |
|---|---|---|---|---|---|---|
| Clerical / Office Staff | 953 | $0.050 | $396 | $434 | $549 | $741 |
| Retail Store | 820 | $1.346 | $1,389 | $2,421 | $5,515 | $10,673 |
| Bar / Tavern | 903 | $0.063 | $406 | $454 | $599 | $840 |
| Electrical Contractor | 461 | $0.961 | $1,094 | $1,831 | $4,040 | $7,722 |
| Masonry | 416 | $0.889 | $1,039 | $1,720 | $3,764 | $7,170 |
| Roofing | 551 | $0.639 | $847 | $1,337 | $2,806 | $5,255 |
| Structural Steel Erection | 507 | $0.848 | $1,007 | $1,657 | $3,607 | $6,856 |
| Warehousing | 807 | $2.373 | $2,176 | $3,995 | $9,450 | $18,543 |
* LCM 1.50 · EMR 1.00 · 100/500/100 limits · $350 expense constant · 2.18% PA Act 57 assessment. PCRB effective 2026-04-01.
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Cost Reduction
How to Lower Your PA Workers' Comp Cost
- Shop at least 3 carriers
LCMs vary 20–40% between carriers for the same class code. An independent agent can shop multiple carriers simultaneously. This single step often produces 15–30% savings. - Verify and split class codes accurately
Employees who do clerical work can have that portion of payroll assigned to Code 953 (loss cost ~$0.09) regardless of their primary code. Accurate allocation is legal, effective, and often missed. - Build a below-average EMR
Every dollar of prevented claims eventually reduces your EMR. Document safety programs, implement return-to-work policies, and manage open claims proactively. An EMR drop from 1.20 to 0.90 saves 25% on premium — permanently. - Consider pay-as-you-go billing
Pay-as-you-go workers' comp calculates premium from each payroll run, eliminating large upfront deposits and end-of-year audit surprises. Best for businesses with variable or seasonal payrolls. - Review prior audit accuracy
If your prior year audit resulted in additional premium, review the auditor's class code assignments and payroll allocations. Errors are common. A licensed broker can help dispute incorrect audit findings.
Key Terms & Comparisons
Related Resources
Glossary Terms
- Loss Cost — the actuarial base rate per $100 of payroll
- Loss Cost Multiplier (LCM) — your carrier's markup over loss cost
- Experience Modifier (EMR) — claims history discount or surcharge
- Class Code — PCRB category that sets your rate
- Act 57 Assessment — the 2.18% mandatory state surcharge
- Expense Constant — the flat $350 per-policy charge
- Pay-As-You-Go Workers' Comp — payroll-driven billing option
Comparisons
- EMR 0.85 vs. 1.15 — real dollar cost difference
- High LCM vs. Low LCM — how carrier choice drives cost
- Pay-As-You-Go vs. Traditional Billing
- Large Deductible vs. Guaranteed Cost
- Retro Rating vs. Guaranteed Cost
Ready to Get Competitive PA Workers' Comp Quotes?
Use your estimate from the calculator above, then connect with a licensed PA agent to compare real carrier rates.