Workers compensation in Pennsylvania is priced mainly on three things: how much payroll you run, the kind of work your employees do, and your history of claims. There is no single statewide rate; an independent Pennsylvania rating bureau publishes advisory starting costs, and each insurer then applies its own multiplier, which is why the same business can get different quotes.
Who this is for: Pennsylvania owners who want to understand what drives a workers comp premium before they shop, so the numbers on a quote make sense and they can spot mistakes. This is about how pricing works, not a fixed price list.
The short version
- Payroll is the base: premiums are figured per $100 of the payroll in each type of work.
- The work you do sets the starting rate: riskier work is priced higher than office work.
- Your claims history adjusts it: a record of few claims can lower your price, a record of many can raise it.
- Pennsylvania sets its own starting prices: a state rating bureau publishes advisory starting costs, and each insurer adds its own markup on top.
- Shopping matters: because each insurer prices differently, quotes vary, so comparing carriers pays off.
What goes into your price
Three pieces do most of the work in a Pennsylvania premium. Understanding them helps you tell a fair quote from an inflated one.
| Price driver | What it is | Why it matters |
|---|---|---|
| Payroll | Your total wages, counted per $100 | The base the whole premium is built on |
| The category your work falls into | A code for the kind of work, known as the class code | Riskier categories carry a higher starting rate |
| Your claims-based score | A factor from your claims history, known as the experience modification rate | Rewards a clean record and penalizes a heavy one |
| The insurer's own multiplier | Each carrier's markup on the advisory cost | Why two carriers quote the same business differently |
How Pennsylvania sets the starting numbers
Pennsylvania does not use the national rating organization that many states rely on. Instead, an independent Pennsylvania rating bureau files advisory starting costs for each type of work with the state, and every insurer then applies its own multiplier on top to set the actual rate you pay. Those advisory costs are reviewed each year; the most recent filing carried a stated effective date of April 1, 2026 and was reported, as of mid-2026, at a small decrease of roughly 1.22 percent overall, continuing a multi-year softening trend. Because the advisory number is only a starting point and carriers layer their own pricing on it, the smartest way to control cost is to make sure your work is categorized correctly and to compare carriers.
A quick Pennsylvania example
Illustrative, not a quote. Picture an HVAC company in Bethlehem with $300,000 of installer payroll. Suppose, for illustration only, that its rate works out to about $4 per $100 of that payroll. That would put the starting premium near $12,000 a year before its claims-based score and the insurer's own multiplier are applied. A clean claims record could pull that down, while a couple of large past claims could push it up. If some of that payroll were miscategorized into a higher-rated type of work, the company could be overpaying by thousands, which is exactly the kind of error worth catching before you buy.
Real questions Pennsylvania owners ask
How is my workers comp premium calculated in Pennsylvania?
It is based mainly on your payroll, the kind of work your employees do, and your claims history. Premiums are figured per $100 of payroll, adjusted by the category of work and by a score based on your past claims.
Is there one set rate for Pennsylvania?
No. An independent Pennsylvania rating bureau publishes advisory starting costs, and each insurer applies its own multiplier on top. That is why the same business can get different quotes from different carriers.
Did Pennsylvania workers comp costs go up or down recently?
The most recent filing carried a stated effective date of April 1, 2026 and was reported, as of mid-2026, at a small decrease of about 1.22 percent overall. That is a starting point only, since carriers apply their own multipliers to set final rates.
What is the category my work falls into, and why does it matter?
It is a code that describes the kind of work your employees do, often called the class code. Riskier work carries a higher starting rate, so putting your payroll in the wrong category can make you overpay.
How does my claims history change the price?
Your past claims produce a score, known as the experience modification rate, that raises or lowers your premium. A record of few claims can bring your cost down, while frequent or large claims push it up.
Why do quotes vary so much between insurers?
Because each carrier applies its own multiplier to the advisory starting cost and weighs your business differently. Comparing several carriers is the most reliable way to find a fair price.
How can I lower what I pay?
Make sure your payroll is categorized correctly, keep your claims record clean with safety and return-to-work efforts, and compare carriers. Small classification errors are a common and fixable source of overpaying.
Why Pennsylvania owners choose Morrow
- We shop the right market for you. Pennsylvania is an open, competitive market: you can buy coverage from any private insurer licensed in the state or from the state-run State Workers' Insurance Fund (SWIF), and Morrow shops multiple carriers to find the best fit instead of leaving you with a single option.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Pennsylvania guides
Every Pennsylvania business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Pennsylvania (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Glossary: workers comp class code
- What is an experience mod, and how do I lower it?
- HVAC contractor workers comp in Pennsylvania
This guide is general information, not legal advice. Pennsylvania rules and penalty amounts can change, so verify current requirements with Pennsylvania Department of Labor and Industry, Bureau of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.