The average cost of workers’ compensation insurance in Washington for 2026 will go up 4.9 percent, the Washington State Department of Labor & Industries (L&I) announced today.
Starting Jan. 1, employers and workers together will pay, on average, $1.37 a week more for each full-time position. Employers pay about 75 percent of the premium, and workers pay about 25 percent.
“While rates are increasing to keep up with the rising cost of providing wage replacement and medical care benefits, we worked — this year and every year — to keep rates steady, predictable, and as low as possible,” L&I Director Joel Sacks said.
The increase is less than what L&I expects it will need to cover 2026 claim costs. As it has done in past years, the agency will use the workers’ compensation contingency reserve to cover the difference.
L&I looks closely at several factors, including the expected workers’ compensation benefits costs, wage inflation, operational costs, investment income, and other financial indicators.
Actual rate depends on industry, claims history
The 4.9 percent increase is an average for all industries. The rate for specific industries could be higher or lower, depending on their recent history of injuries that led to claims.
Employers and workers in Washington pay into the workers’ compensation system to help cover the cost of providing wage and disability benefits for injured workers, as well as medical treatment for workplace injuries and illnesses.
Approval of the final rates followed three public hearings in late October.
L&I works to keep workers’ compensation costs down in several ways. The agency offers several programs and assistance to help employers and workers, which help limit cost increases. L&I also provides financial incentives to employers who reduce workplace injuries and lower associated claim losses.
Washington differs from other states
Most states charge rates as a percentage of payroll, which means when employee wages and payrolls go up, more premiums are automatically collected. Washington’s workers’ compensation premiums are based on hours worked by the worker. When wages go up in Washington, employer and worker contributions stay the same. As a result, L&I will increase the rates to help cover rising costs of providing coverage.
There are additional details on the 2026 workers’ compensation rates on L&I’s workers’ compensation web page.