June 13, 2025 | SIBTF.org – The 2025 Workers’ Comp Assessment Rates Update was recently released by California’s Department of Industrial Relations (DIR). This update outlines new rate changes for employers—both insured and self-insured—funding various workers’ compensation programs, including the Subsequent Injuries Benefits Trust Fund (SIBTF).
The revised assessment rates reflect ongoing adjustments to ensure that California’s workers’ compensation system remains adequately funded amid rising claims costs and more complex injury scenarios. By recalibrating contributions across different employer types, the DIR aims to maintain solvency for critical programs like the SIBTF while promoting fairness in how funds are distributed.
These updates also provide employers with clearer guidance for budgeting and financial planning, helping them anticipate the impact of changing payroll assessments on overall compensation program costs.
SIBTF Receives Highest Share
The SIBTF continues to receive the largest share of total assessment funds. Self-insured employers will now pay 5.7% of payroll to SIBTF, while insured employers will contribute using a factor of 3.0%. These increases reflect a continuing need to fund long-term benefits for workers with pre-existing disabilities who suffer additional job-related injuries.
The updated assessment rates also highlight the state’s focus on balancing the financial responsibilities between self-insured and insured employers. By adjusting contributions based on payroll and risk exposure, the DIR ensures that the SIBTF can continue to provide timely support to workers with compounded injuries. These rates serve as an important signal to employers about the growing emphasis on long-term benefits funding and the necessity of incorporating these contributions into annual budgeting and payroll planning strategies.
Rate Shifts Impact Employers
This 2025 Workers’ Comp Assessment Rates Update marks a clear shift in how the state manages funding for overlapping injury claims. The SIBTF ensures compensation for individuals who suffer multiple impairments, and funding must match the increasing volume and complexity of these claims. As such, employers across industries must prepare for the financial impact of these adjustments.
Administrative Considerations
In addition to SIBTF, employer assessments will fund programs like the Workers’ Compensation Administration Revolving Fund, Occupational Safety and Health Fund, and other enforcement arms. Payroll teams should review the changes immediately and adjust fiscal plans accordingly. Timely compliance will avoid penalties and ensure uninterrupted coverage.
Planning Ahead
The 2025 Workers’ Comp Assessment Rates Update sends a strong signal: state programs supporting injured workers will remain heavily funded. Employers must track these updates, assess internal payroll implications, and plan strategically for the new fiscal year beginning Jul 1, 2025.
Explore the California Department of Industrial Relations’ 2025 workers’ compensation assessments—including the Subsequent Injuries Benefits Trust Fund (SIBTF) rate—in CWCI’s press release: DIR Announces 2025 California Workers Comp User Funding Assessment Rates.
Stay informed about funding changes that affect SIBTF claims and benefits. Visit SIBTF.org for updates, resources, and support for employers and injured workers.
Read More from SIBTF.org:
- DIR 2025 Enforcement Grants
- AB 1398 Heat Injury & SIBTF Procedure Changes
- SIBTF Bill Amendments Advance with Payor Revisions
- AB 1329 Aims to Stabilize SIBTF with Eligibility and Oversight Reforms
- DIR and DWC Staffing Crisis Impacts SIBTF Claims
What do the 2025 assessment rates mean for SIBTF funding?
The 2025 assessment rates significantly increase employer contributions to the Subsequent Injuries Benefits Trust Fund (SIBTF), with self-insured employers now paying 5.7% of payroll. This shift reflects the growing demand for benefits under SIBTF and ensures the fund remains solvent to support injured workers with pre-existing disabilities. Employers must adjust payroll planning and budgets to comply with these updated rates.
What is SIBTF?
The Subsequent Injuries Benefits Trust Fund (SIBTF) is a California program that provides additional compensation to injured workers with pre-existing disabilities. If a worker suffers a new workplace injury that worsens a prior condition, SIBTF offers financial support to help cover the impact of both impairments. This fund ensures that eligible workers receive fair and adequate benefits when multiple injuries affect their long-term ability to earn.