South Carolina workers’ compensation rates have two sides: the weekly benefit an injured worker receives and the premium an employer pays for coverage. For injuries occurring on or after January 1, 2026, the maximum weekly benefit is $1,189.94, set at two-thirds of the worker’s average weekly wage and capped at the statewide average.1South Carolina Workers’ Compensation Commission. Compensation Rates Employer premium rates are built from classification-code loss costs that the National Council on Compensation Insurance files each year; for policies effective April 1, 2026, NCCI proposed a 0.4% decrease to voluntary market loss costs.2National Council on Compensation Insurance. Summary of the Proposed South Carolina Workers Compensation Loss Cost Filing Effective April 1, 2026 The two numbers move on separate cycles, so last year’s figures may already be stale.
Weekly Benefits for Injured Workers in 2026
South Carolina pays wage replacement at two-thirds (66⅔%) of the worker’s average weekly wage before the injury.1South Carolina Workers’ Compensation Commission. Compensation Rates The system is designed to prevent a total loss of income, not to make the worker whole.
The ceiling resets every January based on the statewide average weekly wage from the preceding fiscal year. For 2026 injuries, that cap is $1,189.94 per week.1South Carolina Workers’ Compensation Commission. Compensation Rates A worker earning $3,000 a week before the injury still receives no more than $1,189.94.
At the other end, the weekly benefit cannot fall below $75, provided that amount does not exceed the worker’s actual average weekly pay. A worker earning less than $75 a week receives their full wages rather than two-thirds.3South Carolina Legislature. South Carolina Code 42-9-10 – Amount of Compensation for Total Disability
Temporary total disability payments generally cannot continue beyond 500 weeks from the date of injury.3South Carolina Legislature. South Carolina Code 42-9-10 – Amount of Compensation for Total Disability Fights over the average weekly wage calculation are among the most common disputes in the system, especially for workers with seasonal income, multiple jobs, or variable overtime. Thorough pay records matter.
Scheduled Injury Payouts
South Carolina assigns a fixed number of weeks of benefits to the loss of specific body parts, paid at the same two-thirds rate. The weeks allotted include:4South Carolina Legislature. South Carolina Code 42-9-30 – Schedule of Period of Disability and Compensation
- Shoulder: 300 weeks
- Hip: 280 weeks
- Arm: 220 weeks
- Leg: 195 weeks
- Hand: 185 weeks
- Hearing in both ears: 165 weeks
- Foot: 140 weeks
- Eye: 140 weeks
- Hearing in one ear: 80 weeks
- Thumb: 65 weeks
- Index finger: 40 weeks
- Great toe: 35 weeks
Losing only the first joint of a finger or toe pays at half the weeks listed for the whole digit.5South Carolina Legislature. South Carolina Code of Laws Title 42 – Chapter 9 At the 2026 maximum weekly rate, a hand award of 185 weeks totals roughly $220,139. Injuries not on the schedule, such as back or head injuries, are evaluated by percentage of disability to the body as a whole.
Medical, Death, and Burial Benefits
Medical treatment reasonably necessary to the workplace injury is covered with no dollar cap and no co-pay. That includes hospital stays, surgery, physical therapy, prescriptions, and medical equipment. The employer or its carrier generally chooses the treating doctor, so a worker has to use an approved physician for the bills to be paid. Emergency care at the nearest hospital is the exception.
If a workplace injury is fatal, dependents who relied entirely on the worker’s income receive 66⅔% of the average weekly wage for up to 500 weeks from the date of injury, subject to the same $75 floor and $1,189.94 ceiling. The death has to occur within two years of the accident, or while the worker is still totally disabled and within six years of the accident.5South Carolina Legislature. South Carolina Code of Laws Title 42 – Chapter 9 The employer also pays burial expenses up to $12,000. Dependent children receive benefits through age 18, or through age 23 if enrolled full-time in an accredited school; a child who cannot support themselves because of a mental or physical condition receives the full 500 weeks regardless of age.
How Employer Premium Rates Are Built
Every workers’ compensation premium starts with a classification code tied to the type of work employees perform. Clerical office work might carry a manual rate around $0.15 per $100 of payroll, while a roofing crew can exceed $15.00 per $100 of payroll for the same amount of wages. That hundred-fold spread reflects actual claim payouts by job type. Manual rates are the baseline, not the final bill.
Experience Modification Factor
The biggest adjustment for most mid-sized and large employers is the experience modification factor, often called the E-MOD or “mod.” It compares a company’s claims history to similar employers over three years of data. A mod below 1.0 cuts the premium; a mod above 1.0 raises it. A 0.85 mod yields a 15% discount; a 1.20 mod adds a 20% surcharge. Over several years of high payroll, that swing can mean tens of thousands of dollars. The calculation typically excludes the most recent policy year so that open claims can settle before affecting the rating.6National Council on Compensation Insurance. ABCs of Experience Rating Very small employers with low annual premiums may not qualify for experience rating at all, which makes picking the correct classification code even more important.
Drug-Free Workplace Credit
An employer that maintains a certified drug-free workplace program qualifies for a premium credit of at least 5%. The credit has to be actuarially sound, and if the Department of Insurance determines 5% is not supportable, the director can set a lower percentage.7South Carolina Legislature. South Carolina Code 38-73-500 – Merit Rating The program requires a written policy, employee notification, confidentiality protections, and random drug testing, with annual recertification through the carrier.
Assigned Risk Pool
Employers who cannot find voluntary coverage, usually because of a poor loss history or a high-risk industry, can apply through the assigned risk pool administered by NCCI after being turned down by at least two carriers. Assigned risk coverage is considerably more expensive. NCCI applies an Assigned Risk Adjustment Program surcharge of up to 1.49 times the modified premium on top of the standard rate.8National Council on Compensation Insurance. NCCI WCIP State Instructions – South Carolina Employers whose assigned risk premium hits $250,000 or more are also placed into a mandatory retrospective rating plan with a 20% contingency deposit. Improving loss history, often with the help of the drug-free credit and a strong return-to-work program, is usually the only way out.
The 2026 Rate Cycle
Two different schedules affect the two different numbers. NCCI files proposed voluntary market loss cost changes with the South Carolina Department of Insurance each fall, and the Department reviews them to confirm they are neither excessive nor unfairly discriminatory before approval. The filing effective April 1, 2026 calls for a 0.4% decrease.2National Council on Compensation Insurance. Summary of the Proposed South Carolina Workers Compensation Loss Cost Filing Effective April 1, 2026 The Workers’ Compensation Commission separately updates the maximum weekly benefit each January, pegged to the statewide average weekly wage reported by the Department of Employment and Workforce.1South Carolina Workers’ Compensation Commission. Compensation Rates When proposed rate increases cross certain thresholds, the Department of Insurance holds public hearings. If a policy or claim straddles a calendar-year boundary, check both the NCCI filing and the Commission’s compensation rate advisory.
Who Must Carry Coverage
South Carolina requires workers’ compensation insurance from any private business that regularly employs four or more workers in the same establishment, and from all state and local government employers.9South Carolina Legislature. South Carolina Code of Laws Title 42 – Chapter 1 Part-time employees and family members count toward the four-employee threshold, which catches some small businesses off guard.10South Carolina Workers’ Compensation Commission. Employer FAQs An alternative trigger applies to any employer whose total annual payroll exceeded $3,000 in the previous calendar year, regardless of headcount. Casual employees, agricultural workers, railroad workers, federal employees, owner-operator truck drivers, and certain commission-only real estate agents fall outside mandatory coverage under S.C. Code § 42-1-360.11South Carolina Legislature. South Carolina Code 42-1-360 – Exemption of Casual Employees and Certain Other Employments An exempt employer that voluntarily buys coverage stays bound by the law until filing a Form 38 to withdraw.
Deadlines That Can Erase a Claim
An injured worker must notify the employer within 90 days of the accident. Failing to do so can disqualify the worker from any benefits, unless there is a reasonable excuse for the delay and the employer was not harmed by the late notice.12South Carolina Legislature. South Carolina Code 42-15-20 – Notice to Employer For repetitive trauma injuries like carpal tunnel, the 90-day clock starts when the worker discovers, or reasonably should have discovered, the condition is work-related.
Beyond employer notice, a formal claim has to be filed with the Workers’ Compensation Commission within two years of the accident, using Form 50 for injuries or Form 52 for deaths. Miss that deadline and the right to compensation is permanently barred.13South Carolina Legislature. South Carolina Code 42-15-40 – Time for Filing Claim For occupational diseases, the two years does not begin until the worker receives a definitive diagnosis and is notified. For repetitive trauma, the claim is due within two years of when the worker knew or should have known the injury was compensable, but no later than seven years after the last exposure.
Report injuries immediately, in writing when possible. The 90-day window feels generous until a disputed claim turns on exactly when notice was given.
What Happens If an Employer Doesn’t Carry Coverage
An employer that neglects to secure required coverage faces a daily fine of $1 per employee, with a minimum of $10 and a maximum of $100 per day, continuing until coverage is in place. The Commission assesses these fines in an open hearing.14South Carolina Legislature. South Carolina Code 42-5-40 – Penalty for Failure to Secure Payment of Compensation
The bigger exposure is in civil court. An uninsured employer loses the traditional defenses against employee lawsuits, including contributory negligence, assumption of risk, and the fellow-servant rule. An injured worker can sue directly for full damages instead of being limited to workers’ compensation benefits.14South Carolina Legislature. South Carolina Code 42-5-40 – Penalty for Failure to Secure Payment of Compensation A willful failure to carry coverage is a misdemeanor punishable by a $100 to $1,000 fine, 30 days to six months in jail, or both.