Oregon Workers’ Comp Pure Premium Rate Dropping

Oregon employers on average would pay 87 cents per $100 of payroll for workers’ compensation costs in 2026, down from 91 cents this year, under a new proposal.

The Oregon Department of Consumer and Business Services called for the decline in costs, which would mark 13 years of average decreases in the pure premium rate.

The DCBS credits the cost decrease to the success of Oregon’s workers’ comp system, as well as positive, long-term trends. Fewer claims are entering the system over time, along with claims being generally less severe, according to the National Council on Compensation Insurance.

The pure premium rate would drop by an average 3.3% under the proposal. The pure premium per $100 of payroll will have declined by 46.5%, according to the DCBS.

The reduction in costs is due to fewer claims entering the system over time, along with claims being generally less severe, according to NCCI.

Employers’ total cost for workers’ comp insurance includes the pure premium and insurer profit and expenses, plus the premium assessment. Employers also pay at least half of the Workers’ Benefit Fund assessment, which is a cents-per-hour-worked rate.

The decrease in the pure premium of 3.3% percent is an average, so individual employers may see larger or smaller decrease, no change or an increase.

The premium assessment, a percentage of the workers’ comp premium employers pay, is added to the premium. It would remain at 9.8% in 2026, the same as 2025, under the DCBS proposal.

The decrease in the pure premium will be effective Jan. 1, 2026, but employers will see the changes when they renew their policies in 2026.

Topics Workers' Compensation Oregon