The Pennsylvania Compensation Rating Bureau (PCRB) has approved revisions to the Pennsylvania Construction Classification Premium Adjustment Program (PCCPAP) that may create additional workers’ compensation premium savings opportunities for qualifying construction employers beginning October 1, 2026.
Under PCRB Circular No. 1843 and approved Filing No. 347, the updated program adjusts the wage thresholds used to determine eligibility for PCCPAP premium credits. These changes are intended to better align the program with current construction wage levels while lowering the entry threshold for participation.
What is PCCPAP?
PCCPAP is a premium credit program available to Pennsylvania contractors with qualifying construction classifications on their workers’ compensation policy. The program rewards employers that pay higher average hourly wages by applying a credit to workers’ compensation premium.
Depending on the employer’s qualifying average hourly wage, credits can range from 5% up to a maximum of 30% off standard premium.
What is Changing?
For policies effective October 1, 2026 and later:
• The minimum wage threshold to qualify for a credit decreases slightly
• Updated wage bands and credit percentages will apply
• Payroll and hours worked from the third calendar quarter of 2025 will be used to determine eligibility for many affected policies
Under the revised table:
• Employers with average hourly wages below $38.40 will not qualify for a credit
• Employers reaching average hourly wages of $58.75 or greater may qualify for the maximum 30% credit
These changes may allow additional contractors to qualify for PCCPAP credits or improve existing credits depending on payroll structure and wage levels.
Why This Matters for Contractors
For many construction firms, workers’ compensation is one of the largest insurance expenses. Even modest improvements in PCCPAP eligibility can produce meaningful premium savings.
Contractors should begin reviewing:
• Construction class codes
• Payroll reporting accuracy
• Overtime reporting practices
• Average hourly wage calculations
Proper payroll allocation and recordkeeping will remain critical, especially for employers with multiple construction classifications.
Action Items Before October 2026
Construction employers should work with their insurance advisor to:
• Review current PCCPAP eligibility
• Model potential premium impacts under the new thresholds
• Verify payroll and hour tracking procedures
• Ensure construction classifications are properly assigned
The PCRB has indicated that qualifying employers and insurers will continue to receive PCCPAP notifications through standard procedures.
As always, proactive planning and accurate payroll reporting can make a significant difference in workers’ compensation costs.
Your trusted advisors at McConkey are available to help review your current PCCPAP qualification status, identify potential savings opportunities, and ensure your payroll reporting and classification structure is positioned correctly ahead of the October, 2026 changes.
