DIR Announces 2025 California Workers’ Comp User Funding Assessment Rates

Oakland, CA -- The California Department of Industrial Relations (DIR) has issued the 2025 assessments that workers’ compensation insurers are required to collect from policyholders to cover the budget of the state Division of Workers’ Compensation (DWC) and five related programs set up by state lawmakers. Insurers should apply the following rates against their policyholders’ estimated annual assessable premium for policies incepting January 1, 2025 through December 31, 2025: 

    2025 WC Administration Revolving Fund Assessment/User Funding:  0.012370

    2025 Uninsured Employers Benefit Trust Fund Assessment:  0.000818

    2025 Subsequent Injuries Benefits Trust Fund Assessment:  0.030148

    2025 Occupational Safety & Health Fund Assessment:  0.001885

    2025 Labor Enforcement & Compliance Fund Assessment:  0.001058

    2025 WC Fraud Account Assessment:  0.004096

State law also requires insurers to advance the money on behalf of their policyholders (the first installment is due on or before Tuesday, January 1, 2025; the balance is due on or before Wednesday, April 1, 2025), then recoup the funds via surcharges and assessments on all workers’ compensation policies with 2025 inception dates. Assessment methodologies are noted in a DIR memo issued this week. The DIR memo to insurers notes that for single carriers that were not part of an insurer group that reported data to the WCIRB on an individual company basis for 2023, “Total California Direct Written Premium for assessment purposes is the amount reported for calendar year 2023 to the WCIRB, which reflects the premiums charged to policyholders with the exception that it excludes the impact of deductible credits, retrospective rating adjustments, and policyholder dividends.” For insurers that were part of an insurer reporting group that reported data to the WCIRB for 2023, “Total California Direct Written Premium for assessment purposes is the product of (a) the total 2023 written premium reported to the WCIRB on the aforementioned basis and (b) the ratio of your 2023 California written premium as reported in the 2023 Statutory Annual Statement (these amounts include the effect of deductible credits and retrospective rating adjustments) to the total 2023 Statutory Annual Statement of California written premium reported for your insurer group as a whole.”

To cover their share of the 2025 assessments, self-insured and California legally uninsured employers must apply the following rates against the total amount of workers’ compensation indemnity they paid:  

    2025 WC Administration Revolving Fund Assessment:  0.018754           

    2025 Uninsured Employers Benefit Trust Fund Assessment:  0.001085

    2025 Subsequent Injuries Benefits Trust Fund Assessment:  0.057041

    2025 Occupational Safety & Health Fund Assessment:  0.001177

    2025 Labor Enforcement & Compliance Fund Assessment:  0.000123

    2025 WC Fraud Account Assessment:  0.006624

More details for insurers are in the memo that DIR posted under “What’s New” at https://www.dir.ca.gov/dwc/. The state is mailing the memos along with invoices for each company’s share of the assessments and surcharges to California workers’ comp insurers, self-insured employers and legally uninsured employers. Anyone with questions about the 2025 surcharges and assessments may email them to DIRDWC_Assessment@dir.ca.gov.