New York employers will save more than $191 million in 2025 with a 22% reduction in the state’s workers’ compensation assessment rate, Governor Kathy Hochul announced today. The new 7.1% standard premium rate (up from 9.2% in 2024) will benefit more than 400,000 small businesses across the state when it takes effect on January 1.

“Affordability is crucial for both businesses and employees to thrive,” Hochul said. “This reduction supports employment opportunities, strengthens community resources and helps build a more sustainable environment for New York businesses.”

The savings mark a continuation of a downward trend in proration rates, which have steadily declined since 2019, when the rate was set at 12.6%. New York State Workers’ Compensation Board Chairwoman Clarissa Rodriguez praised the rate cut, saying, “Contributions to employers have continued to decline while benefits to workers have increased in recent years. “We are proud to support both hard-working New Yorkers and the businesses we serve.”

The reduction follows efforts to better manage and expedite the closing of special liabilities within the workers’ compensation system, known as “special funds.” The annual assessment paid for by employers helps operate this system, which covers injured employees while protecting employers from costly litigation. The savings align with Governor Hochul’s broader initiative to alleviate business costs and improve affordability across the state.

The new rate will be formally implemented on January 1. More information is available on the New York State Workers’ Compensation Board website.

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