Kathy Manderino, acting secretary of the Pennsylvania Department of Labor & Industry (DLI) announced on March 27 that state businesses will see a significant cut in workers’ compensation insurance rates while benefit levels for injured workers will be maintained. Workers’ comp insurance rates will drop 5.99%, effective April 1, reducing a key expense for many companies and saving Pennsylvania businesses an estimated $140 million this year.

“A constant concern for business owners is reducing costs while supporting employees’ health and livelihood,” said Gov. Tom Wolf. “These rate reductions will go a long way toward ensuring [that] business owners can continue to create and support jobs that pay in Pennsylvania.”

The rate reduction follows the Insurance Department’s approval of the Pennsylvania Compensation Rating Bureau’s annual loss cost filing. These loss costs are used to determine the premiums businesses pay for workers’ compensation insurance. The premium savings for an individual employer will vary based on the employer’s risk classification, claims experience and other factors. Based on these factors, not every employer will see a decrease.

This is the fourth consecutive workers’ compensation insurance cut in as many years, and brings the cumulative savings to $550 million for the past four years.

“Reducing this cost helps businesses in our state be more competitive, and frees up money to spend on other priorities, such as hiring more workers,” said Acting Insurance Commissioner Teresa Miller.

Discount for businesses with workplace safety committees

The DLI notes that more than 10,530 state-certified workplace safety committees have been established since March 1994, protecting nearly 1.4 million workers. Additionally, employers with certified workplace safety committees have saved close to $524.3 million in workers’ compensation premiums. These savings in insurance costs are due solely to the 5% premium discount provided to businesses that have these committees, according to DLI.

“We are proud of the role our Bureau of Workers’ Compensation Health & Safety division plays in the keeping our workers safe,” Manderino said. “It’s clear that employer safety programs produce tangible benefits and cost savings. Coupled with the reduction in premium rates, employers with safety committees get a win-win in savings and safety.”

Employers should contact their insurance company or agent for more information about how their workers’ compensation premiums will be affected.

For more information on Pennsylvania's workers’ compensation programs and help in making your workplace safer, visit “Workplace and Community Safety.”

Special Reports /

Winning combination: Pennsylvania employers get workers' comp rate cuts, employees maintain benefit levels

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