Alabama Workers Comp Calculator
Estimate workers compensation premiums for Alabama businesses using state-specific rate adjustments.
Workers Comp Premium Estimator
Formula: (Payroll ÷ 100) × Class Rate × Experience Mod
Enter total annual wages paid to employees in this job class
State adjustment factor: 0.95x (vs. national average)
1.00 = average. Below 1.00 = better safety record (discount). Above 1.00 = more claims (surcharge).
Workers Comp in Alabama: What to Know
Market System
competitive
Avg. Rate
$1.85/100
Rate Factor
0.95x national avg
Alabama workers compensation rates are adjusted by a factor of 0.95x compared to the national average. This reflects Alabama's specific claims experience, medical costs, and regulatory environment.
Like all states, Alabama requires most employers to carry workers compensation insurance. Premiums are based on your payroll by job class, your company's claims history (experience modifier), and rates filed by your chosen insurer.
Common Class Code Rates for Alabama
| Job Type | Code | Nat'l Rate | AL Rate |
|---|---|---|---|
| Office/Clerical | 8810 | $0.35 | $0.33 |
| Outside Sales | 8742 | $0.58 | $0.55 |
| Automobile Salesperson | 8748 | $0.65 | $0.62 |
| Retail Store | 8017 | $1.50 | $1.42 |
| Department Store | 8061 | $1.40 | $1.33 |
| Grocery Store | 8006 | $2.10 | $1.99 |
| Restaurant/Food Service | 9079 | $2.50 | $2.38 |
| Fast Food Restaurant | 9058 | $2.20 | $2.09 |
Rate per $100 of payroll. State rate = national avg × 0.95 (Alabama factor). Estimates only.