Oregon Proposes 2.1% Increase in Pure Premium Workers’ Comp Rates for 2027

Oregon employers will pay 92 cents per $100 of payroll for workers’ compensation coverage on average in 2027, a rate that would be the second lowest on record.

A proposal from the Oregon Department of Consumer and Business Services calls for the pure premium rate to increase by an average 2.1%. The pure premium per $100 of payroll will have declined by 36.5% from 2018 to 2027.

The increase to the average pure premium rate would contribute to an increase in the average cost of workers’ comp coverage, from 89 cents per $100 of payroll in 2026 to 92 cents per $100 of payroll in 2027. This figure, the loaded pure premium, includes pure premium, insurer profit and expense factors, and assessments paid by employers.

The rise in Oregon’s average pure premium rate is due to benefits for workers injured on the job being increased through Senate Bill 1519 2026 passed in 2026, which modified weekly lost-time wage compensation benefits for workers with disabling claims. The bill is intended to elevate benefits for lower wage earners who are injured on the job.

Under current law, temporary total disability benefits are paid at just over 66% of the state average weekly wage. Effective Jan. 1, 2027, the weekly compensation rate for wages up to 75% of the average weekly wage will increase to 75%, while the compensation rate for wages more than 75% of the SAWW will decrease to 65%.

The 2.1% increase in the pure premium is an average, so individual employers may see a larger or smaller increase, no change, or a decrease, depending on the employer’s industry.

The increase in the pure premium will be effective Jan. 1, 2027, but employers will see the changes when they renew their policies for 2027.

Topics Trends Workers' Compensation Pricing Trends

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