Maryland Sets 2026 Workers’ Compensation COLA at 2.95%

Section 9-638 of the Labor and Employment Article continues to provide an annual cost-of-living adjustment (COLA) for permanent total disability benefits arising from accidental injuries or occupational diseases occurring on or after January 1, 1988. With the exception of 2011, the COLA has increased every year since the statute’s enactment—and 2026 is no exception.

Effective January 1, 2026, the COLA for covered employees will increase by 2.95%. While this represents a slight decrease from the 3.11% adjustment applied in 2025, it remains consistent with Maryland’s long-standing pattern of annual increases.

As in prior years, the COLA will be reduced for injured workers who also receive Social Security Disability Insurance (SSDI) benefits in order to avoid triggering a federal offset.

All parties involved in Maryland workers’ compensation claims should be mindful of the 2026 COLA increase to ensure compliance with Commission Orders governing permanent total disability benefits.

Written by Collin D. Whitney, Esq.