Oregon — Oregon employers would pay an average of 92 cents per $100 of payroll for workers’ compensation insurance in 2027 under a proposal announced by the Oregon Department of Consumer and Business Services.
The estimated cost, known as the loaded pure premium, would increase from 89 cents per $100 of payroll in 2026. Despite the increase, the proposed 2027 amount would be the second-lowest rate on record, according to the department.
The underlying pure premium rate would increase by an average of 2.1%. Pure premium is the base amount insurers use to cover medical expenses and lost-wage benefits for workers injured on the job. It does not include insurers’ expenses and profits or state assessments.
Individual employers could experience larger or smaller increases, no change or a decrease depending on their industries. Employers’ final premiums are also affected by payroll, claims history and their insurance carriers’ expenses and profit factors.
The department attributed the proposed increase partly to benefit changes approved by the Legislature through Senate Bill 1519 in 2026. The legislation modified weekly wage-replacement benefits for workers with disabling injuries.
Beginning Jan. 1, workers earning up to 75% of Oregon’s average weekly wage would receive benefits equal to 75% of their wages. The compensation rate for earnings exceeding 75% of the state average weekly wage would decrease to 65%.
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Under existing law, temporary total disability benefits generally equal 66⅔% of the worker’s wages, subject to limits tied to the state average weekly wage.
The changes are intended to increase benefits for lower-wage workers injured on the job.
The National Council on Compensation Insurance said long-term declines in the frequency of claims involving missed work continue to offset some of the increased costs associated with more expensive medical and wage-replacement claims. The organization submits annual rate recommendations that DCBS reviews through a public process.
Although the proposed pure premium represents an increase from 2026, the average rate will have fallen 36.5% between 2018 and 2027, according to DCBS. Oregon had the nation’s 14th-lowest workers’ compensation rates in 2024, based on the department’s biennial national comparison.
The state’s premium assessment would remain unchanged at 9.8% of workers’ compensation premiums for a sixth consecutive year. That assessment supports the Workers’ Compensation Division, Oregon OSHA, Workers’ Compensation Board and ombuds offices serving workers and small businesses.
The Workers’ Benefit Fund assessment would increase from 1.8 cents to 2.2 cents per hour worked. Employers and employees split that cost. The fund pays for return-to-work programs, benefits for permanently disabled workers and assistance for families of workers who die from occupational injuries or diseases.
A new assessment created through House Bill 4027 would collect an additional 0.2 cents per hour to support the Oregon Bureau of Labor and Industries. Combined, the Workers’ Benefit Fund and BOLI assessments would total 2.4 cents per hour worked in 2027.
The new pure premium rates would take effect Jan. 1, although employers would encounter the changes when renewing their 2027 policies.
DCBS will hold online public hearings on the premium assessment at 3 p.m. Sept. 17 and the Workers’ Benefit Fund assessment at 4 p.m. the same day. Written testimony will be accepted through 5 p.m. Sept. 24.
| Workers’ Compensation Cost Summary: Effective Jan. 1, 2027 | |||
| What | Pays for | Cost/change | Recent rate history |
| Pure premium | Medical costs and benefits for lost wages. Excludes insurer expenses and profit. | Average 2.1 percent increase from 2026. | 2026: 3.3 percent decrease2025: 3.2 percent decrease2024: 6.7 percent decrease2023: 3.2 percent decrease2022: 5.8 percent decrease |
| Premium assessment | State regulatory costs to administer workers’compensation andworkplace safety programs. | 9.8 percent of premiums for insured employers. | This amount is unchanged since 2022. |
| Self-insured employer and self-insured employer group premium assessment | Self-insured employers and self-insured employer groups pay the premium assessment, plus an additional amount to fund reserves that ensure prompt payment of claims in the event of insolvencies. | 0.1 percent for self-insured employers. 0.1 percent for public-sector self-insured groups. 0.5 percent for private-sector self-insured employer groups. | These amounts are unchanged from 2026. |
| Workers’ Benefit Fund (payroll assessment) | Special benefits for certain injured workers and their families, and return-to-work programs. | 2.2 cents per hour worked. Employers and employees split the cost. | The rate was 1.8 cents per hour in 2026 and 2.0 cents per hour in 2025 and 2024. |
| BOLI Expense Fund component of the WBF | Funding for Oregon Bureau of Labor and Industries | 0.2 cents per hour worked. Employers and employees split the cost. | 2027 is the first year of this component. |
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