TUMWATER, WA — The average cost of workers’ compensation insurance in Washington will rise by about 4.9% in 2026, according to the Washington State Department of Labor & Industries (L&I). Starting Jan. 1, employers and workers will jointly pay an estimated $1.37 more per week for each full-time employee. Employers will cover roughly 75% of that cost, while workers will contribute about 25%.

L&I Director Joel Sacks said the increase is necessary to keep pace with the growing cost of wage-replacement and medical benefits for injured workers. The agency will use its workers’ compensation contingency reserve to help cover the difference between incoming premiums and expected claim costs.

The 4.9% figure represents a statewide average. Actual premiums will vary based on industry and recent injury histories that have resulted in claims. Washington currently insures about 2.8 million workers and more than 205,000 employers through its state-run system.

Unlike most states, workers’ compensation rates in Washington are based on hours worked rather than payroll percentages. Because premiums don’t automatically increase alongside rising wages, L&I adjusts annual rates to meet projected financial needs.

The updated rates follow three public hearings held in late October. Additional details are available on L&I’s workers’ compensation webpage.