Oregon employers will pay an average of 92 cents per $100 of payroll for workers' compensation coverage in 2027 under a proposal announced by the Oregon Department of Consumer and Business Services. The rate would be the second lowest on record, though it represents a 2.1 percent increase from 2026.
The increase stems from Senate Bill 1519 (2026), which raised benefits for workers injured on the job. Starting Jan. 1, 2027, workers earning up to 75 percent of the state average weekly wage will receive 75 percent wage replacement for lost time, while those earning more than 75 percent will receive 65 percent. Previously, all injured workers received 66 2/3 percent wage replacement.
Despite the rate increase, pure premium rates—the base cost for medical expenses and lost wages—have declined 36.5 percent from 2018 to 2027. Long-term declines in lost-time claim frequency continue to offset upward pressure from higher medical and disability claim severity seen nationwide.
Oregon ranked 14th least expensive for workers' compensation rates among U.S. states in 2024, according to a biennial study conducted by the state. The 2.1 percent increase is an average; individual employers may see larger increases, smaller increases, no change, or even decreases depending on their industry and other factors.
The premium assessment rate, which funds Oregon's workers' compensation division and safety programs, would remain unchanged at 9.8 percent of the insurance premium, marking the sixth consecutive year at that level. Public hearings on the proposed rates are scheduled for Sept. 17.