Workers Comp Rates in Massachusetts (MA)
The average workers' compensation rate in Massachusetts is $1.22 per $100 of payroll , effective as of 2025-01-01. This is $0.03 (2.5%) above the national average of $1.19 per $100. Massachusetts has a competitive insurance market where employers can purchase workers' comp from private insurers. Massachusetts requires workers' compensation for all employers. The state has a competitive market with rates near the national average and generous maximum weekly benefits.
Workers Comp Requirements in Massachusetts
Workers Comp Rates by City in Massachusetts
The table below shows average workers' compensation rates for 5 cities in Massachusetts, sorted by rate from highest to lowest. Rates range from $1.18/$100 in Cambridge to $1.25/$100 in Boston. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Boston | $1.25 | $3,125 | +$0.03 | +$0.06 | State capital, largest city |
| Lowell | $1.24 | $3,100 | +$0.02 | +$0.05 | -- |
| Springfield | $1.22 | $3,050 | Same | +$0.03 | -- |
| Worcester | $1.20 | $3,000 | -$0.02 | +$0.01 | -- |
| Cambridge | $1.18 | $2,950 | -$0.04 | -$0.01 | Tech/biotech hub |
How Massachusetts Compares to Other States
Below is a comparison of Massachusetts with five states that have similar workers' compensation rates. This comparison helps illustrate where Massachusetts stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| Massachusetts (MA) | $1.22 | Competitive | 1+ | 5 days | $3,050 |
| South Carolina (SC) | $1.20 | Competitive | 4+ | 7 days | $3,000 |
| Wyoming (WY) | $1.20 | Monopolistic | 1+ | 3 days | $3,000 |
| New York (NY) | $1.25 | Competitive | 1+ | 7 days | $3,125 |
| Maine (ME) | $1.18 | Competitive | 1+ | 7 days | $2,950 |
| Montana (MT) | $1.18 | Competitive | 1+ | 5 days | $2,950 |
Workers Comp Cost Examples for Massachusetts
The following table shows estimated annual workers' compensation costs for various payroll sizes in Massachusetts using the state average rate of $1.22 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 | $610 | $51 |
| $100,000 | $1,220 | $102 |
| $250,000 | $3,050 | $254 |
| $500,000 | $6,100 | $508 |
| $1,000,000 | $12,200 | $1,017 |
| $2,500,000 | $30,500 | $2,542 |
Frequently Asked Questions About Workers Comp in Massachusetts
How much does workers comp cost in Massachusetts?
The average workers' compensation rate in Massachusetts is $1.22 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $3,050 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 Massachusetts?
Yes. Massachusetts requires workers' compensation for employers with 1 or more employees. The following are exempt: Domestic workers (fewer than 16 hrs/week), certain sole proprietors. Penalties for noncompliance include: Stop-work order, up to $1,500 fine per day, criminal penalties.
Where can I buy workers comp in Massachusetts?
Massachusetts 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 Massachusetts?
The waiting period in Massachusetts is 5 days. This means an injured worker must wait 5 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 Massachusetts is $1,694.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in Massachusetts, 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.