Annual Workers’ Compensation Assessment Rate in New York to decrease 22-percent in 2025

ALBANY, NY- The Annual Workers’ Compensation Assessment Rate in New York State will drop 22-percent for 2025.

According to Governor Kathy Hochul, state employers are expected to save more than $191-million as a result of this rate drop, which goes into effect January 1. “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,” the Governor said.

Employers pay an annual assessment to operate the workers’ compensation system, which provides critical benefits to workers who are injured or become ill as a result of their employment responsibilities, while protecting employers from costly lawsuits.

The workers’ compensation rate will be 7.1 percent of the standard premium or premium equivalent, which represents a 22 percent decrease from 2024.

The assessment rate has been steadily declining in recent years, largely due to prudent management in accelerating the runoff of special workers’ compensation liabilities, known as special funds, which are funded by the assessments.

The 2025 rate of 7.1 percent reflects an over 43 percent decrease since 2019, when the assessment rate was 12.6 percent.

Image via the office of New York Governor Kathy Hochul.