Workers Comp Rates in Hawaii (HI)
The average workers' compensation rate in Hawaii is $1.85 per $100 of payroll , effective as of 2025-01-01. This is $0.66 (55.5%) above the national average of $1.19 per $100. Hawaii has a competitive insurance market where employers can purchase workers' comp from private insurers. Hawaii has above-average workers' comp rates driven by the high cost of living, remote location, and generous benefit structures. All employers must provide coverage.
Workers Comp Requirements in Hawaii
Workers Comp Rates by City in Hawaii
The table below shows average workers' compensation rates for 3 cities in Hawaii, sorted by rate from highest to lowest. Rates range from $1.82/$100 in Honolulu to $1.90/$100 in Hilo. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Hilo | $1.90 | $4,750 | +$0.05 | +$0.71 | Big Island |
| Kailua | $1.85 | $4,625 | Same | +$0.66 | -- |
| Honolulu | $1.82 | $4,550 | -$0.03 | +$0.63 | State capital |
How Hawaii Compares to Other States
Below is a comparison of Hawaii with five states that have similar workers' compensation rates. This comparison helps illustrate where Hawaii stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| Hawaii (HI) | $1.85 | Competitive | 1+ | 3 days | $4,625 |
| Connecticut (CT) | $1.60 | Competitive | 1+ | 3 days | $4,000 |
| Alaska (AK) | $2.15 | Competitive | 1+ | 3 days | $5,375 |
| Pennsylvania (PA) | $1.55 | Competitive | 1+ | 7 days | $3,875 |
| California (CA) | $1.45 | Competitive | 1+ | 3 days | $3,625 |
| Rhode Island (RI) | $1.42 | Competitive | 1+ | 3 days | $3,550 |
Workers Comp Cost Examples for Hawaii
The following table shows estimated annual workers' compensation costs for various payroll sizes in Hawaii using the state average rate of $1.85 per $100 of payroll. Actual costs depend on your industry class code and experience modifier.
| Annual Payroll | Est. Annual Premium | Est. Monthly Cost |
|---|---|---|
| $50,000 | $925 | $77 |
| $100,000 | $1,850 | $154 |
| $250,000 | $4,625 | $385 |
| $500,000 | $9,250 | $771 |
| $1,000,000 | $18,500 | $1,542 |
| $2,500,000 | $46,250 | $3,854 |
Frequently Asked Questions About Workers Comp in Hawaii
How much does workers comp cost in Hawaii?
The average workers' compensation rate in Hawaii is $1.85 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $4,625 per year. However, actual rates vary significantly by industry. Office workers may pay as little as $0.20/$100 while high-risk industries like construction or logging can exceed $10/$100.
Is workers comp required in Hawaii?
Yes. Hawaii requires workers' compensation for employers with 1 or more employees. The following are exempt: Domestic workers (fewer than 20 hrs/week), certain real estate agents. Penalties for noncompliance include: Up to $10,000 fine, imprisonment up to 30 days, personal liability.
Where can I buy workers comp in Hawaii?
Hawaii has a competitive workers' compensation market. You can purchase coverage from any licensed private insurance company, through an insurance agent or broker, or in some cases through a state-sponsored program. Shopping multiple carriers is recommended to find the best rate for your industry and claims history.
What is the waiting period for workers comp in Hawaii?
The waiting period in Hawaii is 3 days. This means an injured worker must wait 3 days before receiving wage replacement benefits. Medical benefits typically begin immediately. If the disability extends beyond a certain number of days (usually 14-21 depending on the state), the waiting period benefits are paid retroactively. The maximum weekly benefit in Hawaii is $1,166.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in Hawaii, or browse all 50 states to compare workers' comp rates across the country. Remember that actual rates depend on your industry classification, claims history, and experience modification rate.