Workers Comp Rates in Illinois (IL)
The average workers' compensation rate in Illinois is $1.30 per $100 of payroll , effective as of 2025-01-01. This is $0.11 (9.2%) above the national average of $1.19 per $100. Illinois has a competitive insurance market where employers can purchase workers' comp from private insurers. Illinois requires workers' compensation for virtually all employers. The state has a competitive market with rates slightly above the national average, driven by strong labor protections.
Workers Comp Requirements in Illinois
Workers Comp Rates by City in Illinois
The table below shows average workers' compensation rates for 5 cities in Illinois, sorted by rate from highest to lowest. Rates range from $1.22/$100 in Naperville to $1.35/$100 in Chicago. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Chicago | $1.35 | $3,375 | +$0.05 | +$0.16 | Largest city, higher construction rates |
| Rockford | $1.32 | $3,300 | +$0.02 | +$0.13 | Manufacturing |
| Aurora | $1.28 | $3,200 | -$0.02 | +$0.09 | -- |
| Springfield | $1.25 | $3,125 | -$0.05 | +$0.06 | State capital |
| Naperville | $1.22 | $3,050 | -$0.08 | +$0.03 | -- |
How Illinois Compares to Other States
Below is a comparison of Illinois with five states that have similar workers' compensation rates. This comparison helps illustrate where Illinois stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| Illinois (IL) | $1.30 | Competitive | 1+ | 3 days | $3,250 |
| Delaware (DE) | $1.30 | Competitive | 1+ | 3 days | $3,250 |
| Vermont (VT) | $1.32 | Competitive | 1+ | 3 days | $3,300 |
| West Virginia (WV) | $1.28 | Competitive | 1+ | 3 days | $3,200 |
| District of Columbia (DC) | $1.35 | Competitive | 1+ | 3 days | $3,375 |
| Louisiana (LA) | $1.35 | Competitive | 1+ | 7 days | $3,375 |
Workers Comp Cost Examples for Illinois
The following table shows estimated annual workers' compensation costs for various payroll sizes in Illinois using the state average rate of $1.30 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 | $650 | $54 |
| $100,000 | $1,300 | $108 |
| $250,000 | $3,250 | $271 |
| $500,000 | $6,500 | $542 |
| $1,000,000 | $13,000 | $1,083 |
| $2,500,000 | $32,500 | $2,708 |
Frequently Asked Questions About Workers Comp in Illinois
How much does workers comp cost in Illinois?
The average workers' compensation rate in Illinois is $1.30 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $3,250 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 Illinois?
Yes. Illinois requires workers' compensation for employers with 1 or more employees. The following are exempt: Sole proprietors, partners, certain corporate officers, domestic workers (fewer than 40 hrs/week). Penalties for noncompliance include: Class 4 felony for willful failure, $500/day fine minimum, personal liability.
Where can I buy workers comp in Illinois?
Illinois 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 Illinois?
The waiting period in Illinois 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 Illinois is $1,396.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in Illinois, 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.