In this guide7 sections
For 2026, California raised the assessments that fund its workers’ compensation system. The combined charge on insured employers rose to about 5.19% of premium, up from about 5.04% in 2025. These assessments are paid by employers through their insurers. They don’t come out of your paycheck, and they don’t reduce the benefits you receive if you are hurt at work.
Key takeaways
- The Department of Industrial Relations set the 2026 assessment factors in a November 2025 notice to insurers. Insured employers pay a combined factor of 0.051911, about 5.19% of assessable premium.
- The money funds the Division of Workers’ Compensation and five related programs, including the fund that pays injured workers whose employers were illegally uninsured.
- Your employer can’t deduct any part of the cost of workers’ comp from your wages (Labor Code §3751).
- Your benefits are set by law. For 2026 injuries, temporary disability ranges from $264.61 to $1,764.11 a week.
What changed for 2026
Each year, DIR calculates how much money the workers’ comp system needs to run and sets assessment factors under Labor Code §62.5. Insurers apply them to each policyholder’s assessable premium on policies that start during the calendar year. Self-insured employers apply separate factors to the indemnity they paid. The 2026 assessment notice, dated November 25, 2025, set these factors for insured employers:
| Fund | 2026 factor | Percent of premium |
|---|---|---|
| Workers’ Compensation Administration Revolving Fund | 0.014958 | 1.4958% |
| Subsequent Injuries Benefits Trust Fund | 0.020428 | 2.0428% |
| Uninsured Employers Benefits Trust Fund | 0.000956 | 0.0956% |
| Occupational Safety and Health Fund | 0.005678 | 0.5678% |
| Labor Enforcement and Compliance Fund | 0.005301 | 0.5301% |
| Workers’ Compensation Fraud Account | 0.004590 | 0.4590% |
| Total | 0.051911 | 5.1911% |
The combined factor was 0.050375 for 2025 policies, so the rate rose slightly. The total dollar amount assessed across all payers was about $2.04 billion, a little less than the roughly $2.06 billion assessed the year before.
Where the money goes, and why it matters to you
- Running the system. The administration fund pays for the Division of Workers’ Compensation, which runs the district offices where claims are heard and the Information and Assistance officers who give injured workers free help.
- Workers with an earlier disability. The Subsequent Injuries Benefits Trust Fund pays extra compensation when a work injury combines with a prior disability or impairment to produce permanent disability of at least 70%.
- Uninsured employers. The Uninsured Employers Benefits Trust Fund pays appeals board awards that an illegally uninsured employer doesn’t pay. See what to do if your employer doesn’t have workers’ comp insurance.
- Safety, labor enforcement and fraud. Separate funds support workplace safety, labor law enforcement and fraud investigation.
The cost can’t be passed to you
Labor Code §3751(a) says no employer may take “any deduction from the earnings of any employee, either directly or indirectly, to cover the whole or any part of the cost of compensation.” Violating it is a misdemeanor. If a line on your pay stub looks like a workers’ comp charge, keep a copy and ask about it in writing.
The assessments also don’t change what you receive. Benefits are set by statute. For injuries on or after January 1, 2026, temporary disability is generally two-thirds of your average weekly wage, with a minimum of $264.61 and a maximum of $1,764.11 a week. See temporary disability benefits, or estimate yours with our workers’ comp benefits calculator.
Higher costs and claim scrutiny
Rising system costs don’t give an employer or insurer the right to delay treatment, underpay benefits or deny a valid claim. Protect your claim by reporting the injury right away, turning in a DWC-1 claim form and keeping copies of everything. If the claims administrator doesn’t deny your claim within 90 days after you file the claim form, it is generally presumed compensable (Labor Code §5402). If you are denied, read what to do after a denied workers’ comp claim.
Here is a hypothetical. Dana, a warehouse worker, hurts her back lifting boxes. Her supervisor says premiums are going up and asks her to use her own health insurance instead of filing a claim. She files the DWC-1 anyway. Her employer’s costs aren’t a reason to give up comp benefits, and punishing her for filing can violate Labor Code §132a.
Frequently asked questions
Will the 2026 assessment increase lower my workers’ comp benefits?
No. Benefit amounts are set by law, not by the assessment rates.
Can my employer make me pay for workers’ comp insurance?
No. Labor Code §3751 bars employers from taking any contribution or wage deduction to cover workers’ comp costs.
Who pays the assessments?
Insured employers pay through a surcharge their insurer adds to the premium. Self-insured employers pay based on the indemnity they paid.
Can my employer pressure me not to file because its premiums are rising?
Your employer can’t punish you for filing a claim. Firing or discriminating against you because you filed, or said you intend to file, can violate Labor Code §132a. See workers’ comp retaliation.
Talk to a California workers’ comp lawyer
Employees First Labor Law represents workers exclusively. If your claim was delayed or denied, or you were pressured not to file, we offer free virtual consultations. Contact us online or call (310) 853-3461.
This article is general information about California law as of 2026, not legal advice for your situation. Reading it does not create an attorney-client relationship.
