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California workers' comp cost calculator

Enter your annual payroll by type of work. The calculator multiplies each payroll by the advisory pure premium rate the California Insurance Commissioner approved effective September 1, 2025 for that WCIRB classification, then applies your experience modification. That is the same arithmetic every carrier starts from; carriers then add their own filed rate, credits or debits, and state assessments.

Rates: WCIRB September 1, 2025 advisory pure premium rates as approved by the Insurance Commissioner on July 11, 2025 (statewide average $1.52 per $100). Method: codes 8810, 8871, 9081 and 7382 use the published approved figures; the rest apply the approved-to-proposed ratio (1.52 ÷ 1.56) to the WCIRB's filed table and are rounded to the cent, so they can differ by a few cents from the official file. Published 2026-10-04 by Insurance City Agency, LLC, CA License #6003045. Reviewed by Santo Militello, California-licensed Property & Casualty agent (CA License #1737723).

How the number is built

Premium = payroll ÷ 100 × class rate × experience modification. Payroll and classification do almost all the work. Under the approved 9/1/2025 rates, clerical office employees (8810) rate at $0.20 per $100 of payroll, a restaurant (9081) at $2.53, a retail store (8017) at about $2.73, general carpentry (5403) at about $11.31, and roofing (5551) at about $13.59. Same payroll, premiums more than 60× apart. (Source: Insurance Commissioner decision, 9/1/2025 rates; WCIRB filing table.)

The pure premium rate covers expected losses and the cost of handling claims. Each insurer files its own rates above it with the Department of Insurance, and then applies schedule credits or debits for your safety program, years in business and claims history. That is why the result shows a range: in practice, carrier pricing lands roughly between the pure premium figure and about 1.6× it, before fees and the state assessments.

Same payroll, by class of work

Estimated annual pure premium at $250,000 of payroll, mod 1.00:

What moves your real quote

• Classification. Carriers classify by what each employee actually does, and the WCIRB audits it. Misclassifying field workers as clerical is the most common premium surprise at audit.
• Experience modification. Assigned by the WCIRB once your premium passes the eligibility threshold; new businesses start at 1.00 and drop below it after claim-free years.
• Payroll estimates vs. audit. The policy is priced on your estimate and trued up at audit. See how the payroll audit works.
• Owners and officers. Including or excluding them changes payroll and premium; the rules depend on entity type.
• Subcontractors. Uninsured subs get picked up on your audit as if they were employees.

Frequently asked questions

How is California workers' comp premium calculated? Annual payroll divided by 100, multiplied by the rate for your WCIRB classification, multiplied by your experience modification. Carriers then apply their own filed rate deviation, schedule credits or debits, and fees and assessments.

What is a pure premium rate? The advisory rate per $100 of payroll that the WCIRB files and the Insurance Commissioner approves for each classification. It covers losses and loss adjustment expense only; it is a floor for comparison, not a quote.

Is this a quote? No. A real quote needs your exact classification, payroll by class, experience mod and the carrier's filed rates. A licensed agent at Insurance City runs that for you, usually the same business day.

Related: Workers' compensation insurance · Getting workers' comp with two employees · Who can be excluded.