How is a workers' compensation premium calculated?

The standard formula is payroll divided by 100, times the classification code base rate, times the experience modification factor. Mississippi uses this NCCI-based method, so a higher payroll, a riskier class code, or a worse experience mod all raise the premium.

What is the experience modification factor?

The experience mod, or e-mod, compares your company's past claims history to others in your industry. A mod of 1.0 is average; below 1.0 earns a discount for a good safety record, and above 1.0 adds a surcharge for worse-than-expected losses. New or small employers often default to 1.0.

Where do I find my class code base rate in Mississippi?

Your insurance carrier or agent provides the base rate for each NCCI classification code, expressed as dollars per $100 of payroll. Office and clerical codes have low rates, while roofing or logging codes are much higher because the injury risk is greater.

What is schedule rating?

Schedule rating is an optional credit or debit a carrier may apply based on factors like safety programs, equipment, and management. A credit lowers your premium and a debit raises it. Enter it as a percentage; leave it at zero if your policy has no schedule modifier.

Is this my exact workers' comp cost?

It is a close estimate of the manual premium, not a final bill. Carriers may add expense constants, taxes, assessments, and minimum premiums, and may split payroll across multiple class codes. Use this to budget, then confirm the bound premium with your agent.

Mississippi Workers' Compensation Premium Calculator

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Workers’ compensation premium in Mississippi follows the standard NCCI formula: your premium scales with payroll, the riskiness of the job classification, and your claims history (the experience mod). This tool combines those factors, plus an optional schedule credit or debit, to estimate your annual premium.

How it works

Premium is payroll per $100 times the class base rate times the experience mod, then adjusted by any schedule rating:

base premium     = (annual payroll / 100) x class base rate
modified premium = base premium x experience mod
final premium    = modified premium x (1 + schedule debit% - schedule credit%)

A class base rate is expressed in dollars per $100 of payroll. The experience mod (e-mod) is 1.0 for an average employer, below 1.0 for a strong safety record, and above 1.0 for worse-than-expected losses. Schedule rating is an optional carrier adjustment.

Example and notes

A business with $500,000 of payroll in a class coded at $2.50 per $100, with a 0.95 experience mod and no schedule modifier: base premium is (500,000 / 100) x 2.50 = 12,500, modified to 12,500 x 0.95 = 11,875 dollars. A 5% schedule credit would lower it further. This is the manual premium estimate — carriers add expense constants, taxes, and assessments, and may split payroll across multiple class codes, so confirm the bound figure with your agent.