Safety & Workforce worked example

Workers Comp Cost per Hour with annual workers' comp premium of 450,000 $: a worked example

What does the result look like when annual workers' comp premium reaches 450,000 $? The full calculation is worked below with real intermediate numbers. Use it to load workers' comp into a fully burdened labor rate in Safety & Workforce.

The inputs for this scenario

  • Annual workers' comp premium: 450,000 $ (raised for this scenario; the documented default is 180,000)
  • Annual labor hours worked: 400,000 hr (unchanged)
  • Rate normalization multiplier: 1 x (unchanged)

Working through the calculation

  • Applying the documented formula (Workers' comp cost per hour = annual premium ÷ annual hours worked × normalization factor) to the inputs above produces each figure below.
  • At this operating point the engine returns 1.13 $ / hr for workers' comp cost per hour, the number this scenario is built around.
  • At this operating point the engine returns 1.13 value for raw ratio.
  • At this operating point the engine returns 1 x for conversion factor.
  • At this operating point the engine returns 400,000 value for denominator.

How this compares with the baseline

  • Against the tool's baseline example, where annual workers' comp premium sits at 180,000 $ and the headline result is 0.45 $ / hr, this scenario comes in 150% above the baseline at 1.13 $ / hr.
  • A figure at this level is achievable when annual workers' comp premium is genuinely sustained, not just peaked for a shift. It spreads one blended premium evenly across all hours, so it hides the fact that high-mod job classes (roofing, welding) carry far more comp cost per hour than low-risk office or assembly work; class-code-level rates are needed for precise pricing.

Results at a glance

  • Workers' comp cost per hour: 1.13 $ / hr (headline result)
  • Raw ratio: 1.13 value
  • Conversion factor: 1 x
  • Denominator: 400,000 value

Run it with your numbers

  • Every input above is editable in the live Workers Comp Cost per Hour calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.