PA Workers Comp Calculator
Complete 2026 Guide · PCRB Data
Workers Compensation Insurance in Pennsylvania
Pennsylvania requires workers compensation insurance for virtually every employer with at least one employee. This guide covers 2026 rates, legal requirements, class codes, how premiums are calculated, and how to get the best coverage for your PA business.
Legal Requirements
Who Needs Workers Compensation Insurance in Pennsylvania?
Pennsylvania's Workers' Compensation Act (Act 305, 1915) requires virtually every employer with one or more employees to carry workers' compensation insurance. This applies regardless of business structure: sole proprietors with employees, partnerships, LLCs, corporations, nonprofits, and churches.
Coverage applies to:
- Full-time, part-time, and seasonal employees
- Family members on payroll
- Minors employed by the business
- Corporate officers who work in the business
- LLC members who actively work in the business
Who May Be Exempt
- Sole proprietors with no employees — not required to cover themselves, but may elect to
- Partners in a general partnership — may exclude themselves, must cover employees
- LLC members — may elect exclusion for themselves, not for employees
- Independent contractors — only if they truly qualify under PA's strict classification test
- Certain agricultural workers — limited exemption for casual workers with minimal earnings
Warning: Pennsylvania applies a strict "ABC test" for contractor classification. Misclassifying employees as independent contractors is one of the most common and expensive compliance errors for PA small businesses.
Cost Overview
How Much Does Workers Compensation Insurance Cost in Pennsylvania?
PA workers' compensation insurance costs $0.50 to $15+ per $100 of annual payroll, depending primarily on your industry. For a business with $100,000 in payroll:
- Low-risk (clerical, retail): $400 – $2,000/year
- Mid-risk (landscaping, restaurant, healthcare): $1,500 – $6,000/year
- High-risk (roofing, structural steel, logging): $8,000 – $20,000+/year
These ranges reflect the wide variation in PCRB loss costs — the actuarial rates filed for each class code based on Pennsylvania's historical claims data. Your actual premium also depends on:
- Loss Cost Multiplier (LCM): Your insurer's markup, typically 1.20–1.80
- Experience Modifier (EMR): Your claims history vs. industry average
- Employer liability limits: Basic (100/500/100) vs. enhanced limits
Premium Calculator
Calculate Your 2026 PA Workers' Comp Premium
Enter your class code and payroll on the left. Your estimate and premium breakdown will appear on the right.
2026 PCRB Data
PA Workers Compensation Insurance Rates by Industry
Estimated annual premiums using LCM 1.50 · EMR 1.00 · 100/500/100 limits · $350 expense constant · 2.18% PA assessment.
| Industry | Class Code | 2026 Loss Cost | Est. Premium ($100K payroll) | Est. Premium ($250K payroll) |
|---|---|---|---|---|
| Clerical / Office | 953 | $0.050 | $434 | $549 |
| Retail Store | 820 | $1.346 | $2,421 | $5,515 |
| Electrical Contractor | 461 | $0.961 | $1,831 | $4,040 |
| Roofing | 551 | $0.639 | $1,337 | $2,806 |
* Representative code per industry. Actual premiums vary by carrier LCM and EMR. PCRB data effective April 1, 2026.
How It Works
How PA Workers Compensation Insurance Premiums Are Calculated
Pennsylvania uses a standardized actuarial formula set by the PCRB. Every insurer starts from the same base — what differs is the LCM and any experience modifications.
Step 1: Manual Premium
The Loss Cost is the PCRB's filed rate per $100 payroll for your class code — it represents the expected pure loss component. The LCM is your insurer's markup covering expenses and profit.
Step 2: Experience Modification
After 3 years of coverage, the PCRB calculates your EMR by comparing your actual claims to expected losses for businesses your size and type. EMR 1.00 = average. Below 1.00 = discount; above 1.00 = surcharge.
Step 3: Expense Constant + PA Assessment
A flat $350 expense constant (PCRB, 2026) is added to every policy. Then PA Act 57 adds a 2.18% state assessment on top of the total.
Full methodology documentation with employer liability surcharges →
Purchasing Guide
How to Buy Workers Compensation Insurance in Pennsylvania
PA employers can purchase workers' comp through three main channels:
1. Private Insurance Carriers
Most PA employers purchase from one of the 200+ licensed property/casualty insurers writing workers' comp in the state. Private carriers file their own LCMs and may specialize in certain industries (construction, healthcare, hospitality, etc.). Shopping multiple carriers is the most effective way to reduce cost.
2. Independent Insurance Agents / Brokers
A licensed PA agent shops your risk with multiple carriers simultaneously. A specialist who focuses on workers' comp will know which carriers have the best LCMs for your class code and can help you structure your payroll allocation to minimize premium.
3. State Workers' Insurance Fund (SWIF)
SWIF is the Commonwealth's insurer of last resort — it cannot deny coverage to any PA employer. Rates are typically higher than private market, but SWIF provides a guaranteed option for high-hazard industries or businesses with poor loss history.
Steps to Buy
- Use the calculator above to estimate your premium range
- Identify your PCRB class codes using the class code directory
- Request quotes from 3+ carriers or work with an independent agent
- Compare LCMs, coverage terms, and payment options
- Bind coverage and post the required LIBC-500 notice in your workplace
Cost Reduction
How to Reduce Your PA Workers Compensation Insurance Premium
Shop Multiple Carriers
LCMs vary 20–40% between carriers. Getting 3+ quotes for the same class code and payroll can save thousands annually — especially for high-hazard industries.
Manage Your EMR
An EMR below 1.00 reduces your premium dollar-for-dollar. Invest in safety programs, return-to-work policies, and proactive claims management to build a below-average loss history.
Verify Class Code Accuracy
Employees performing lower-hazard work (clerical, inside sales) can often be assigned to Code 953 or other lower-cost codes. Splitting payroll accurately can reduce blended premium significantly.
Implement Safety Programs
Documented safety training, OSHA compliance, and incident reporting directly reduce claim frequency. Fewer claims = lower EMR over 3 years = permanent premium reduction.
Common Questions
Pennsylvania Workers Compensation Insurance FAQ
-
Is workers' compensation insurance required in Pennsylvania?
Yes. Pennsylvania law (Act 305 of 1915) requires virtually all employers with one or more employees to carry workers' compensation insurance. Sole proprietors with no employees are generally exempt. Failure to carry required coverage is a criminal offense in PA — a third-degree misdemeanor for a first violation. -
How much does workers' compensation insurance cost in Pennsylvania?
Costs vary widely by industry. PA workers' comp typically runs $0.50–$15+ per $100 of payroll. For a business with $100,000 annual payroll, expect $500–$15,000+ per year. The key variables are your class code (industry), your insurer's Loss Cost Multiplier (LCM), and your Experience Modifier (EMR). -
How is PA workers' comp premium calculated?
The formula is: (Annual Payroll ÷ 100) × PCRB Loss Cost × LCM × EMR + $350 expense constant, then multiply by 1.0218 for the PA Act 57 assessment. Loss costs are set by the PCRB per $100 payroll for each class code. LCMs are filed by each carrier individually and typically range 1.20–1.80. -
What is the PCRB?
The Pennsylvania Compensation Rating Bureau (PCRB) is the licensed rating organization for workers' compensation insurance in Pennsylvania. It files loss costs — the actuarial baseline for premiums — for all class codes, and calculates experience modification rates (EMRs) for eligible employers. -
Can I get workers' comp for my small business in Pennsylvania?
Yes. Any employer with at least one employee in Pennsylvania must have coverage. Small businesses can purchase through private carriers, independent agents, or the State Workers' Insurance Fund (SWIF) — which cannot deny coverage to any PA employer. -
What does PA workers' comp actually cover?
Pennsylvania workers' comp covers: (1) medical expenses for work-related injuries with no deductible for the employee; (2) wage replacement (typically 2/3 of average weekly wage) during disability; (3) specific loss benefits for permanent impairments; (4) death benefits for dependents. It also includes employer liability coverage (Part 2) protecting against third-party lawsuits. -
What is the PA Act 57 assessment?
Act 57 assessment is a state-mandated 2.18% surcharge (2026) added to all Pennsylvania workers' comp policies. It funds the Workers' Compensation Security Fund, the Supersedeas Fund, and other state programs. It is collected by your insurer and remitted to the state. -
What is the State Workers' Insurance Fund (SWIF)?
SWIF is Pennsylvania's state-operated workers' comp insurer of last resort. It is required to provide coverage to any PA employer regardless of industry, loss history, or risk profile — making it the backstop for businesses that cannot obtain private market coverage. SWIF rates are typically higher than private market rates.
Get a Free PA Workers Compensation Insurance Quote
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Related Guides
More Pennsylvania Workers Compensation Insurance Resources
PA Workers' Comp Costs
Detailed cost breakdown by industry, payroll level, and how each factor affects your premium.
PA Legal Requirements
Who must carry coverage, who's exempt, penalties for non-compliance, and how to get compliant.
PA Exemptions Guide
Sole proprietors, partners, LLC members, officers, agricultural workers — who qualifies for exemption.
Industry Guides
Workers' comp cost guides for construction, restaurants, healthcare, landscaping, and more.
Key Terms & Comparisons
Related Resources
Glossary Terms
- Class Code — PCRB category that sets your loss cost
- 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
- PCRB — Pennsylvania Compensation Rating Bureau
- SWIF — Pennsylvania's insurer of last resort
- Act 57 Assessment — the 2.18% state surcharge
Comparisons
- SWIF vs. Private Market — when each option makes sense
- EMR 0.85 vs. 1.15 — real dollar impact on your premium
- High LCM vs. Low LCM — how carrier selection affects cost
- Pay-As-You-Go vs. Traditional Billing
- Sole Proprietor vs. Corporation — coverage implications