A reduction in the annual workers’ compensation assessment rate is expected to save New York State employers more than $191 million in 2025.
Employers pay an annual assessment to operate the workers’ compensation system. The new rate, which was set Tuesday and goes into effect on Jan. 1, will be a 22 percent decrease from 2024. The rate will be 7.1 percent of the standard premium or premium equivalent.
“Affordability is crucial for both businesses and employers to thrive,” Gov. Kathy Hochul said. “This tremendous increase in savings for New York State’s employers not only adds employment opportunities, but also strengthens the necessary services and the community that businesses provide. We are dedicated to supporting our State’s businesses and their employees, and ensuring that they receive the benefits they rely on to care for themselves and for their families.”
New York State Workers’ Compensation Board Chair Clarissa Rodriguez establishes annually an assessment rate for all employers by Nov. 1. Rates are determined by the Workers’ Compensation Board’s need and budgeted statewide premium, and is calculated by dividing the board’s total estimated annual expenses by the total estimated statewide premium.
The assessment rate has declined steadily since 2019 when the assessment rate was 12.6 percent.