Starting Jan. 1, New Jersey workers will see adjustments to their benefits and taxable wage bases for key programs such as Unemployment Insurance, Temporary Disability Insurance, Family Leave Insurance, and Workers’ Compensation. The New Jersey Department of Labor and Workforce Development (NJDOL) announced the updates this week, which reflect the state’s rising average weekly wage.
The changes include increases in maximum weekly benefit rates:
- Unemployment Insurance: Up to $875 from $854.
- Temporary Disability and Family Leave Insurance: Up to $1,081 from $1,055.
- Workers’ Compensation: Up to $1,159 from $1,131 for temporary disability, permanent total disability, permanent partial disability, and dependency.
These adjustments are based on the statewide average weekly wage, which rose by 2.5% in 2023 to $1,545.60. This figure serves as the foundation for recalculating benefit rates and taxable wage bases each year.
Additionally, the taxable wage bases—used to determine the level of wages subject to contributions under these programs—will also increase:
- Unemployment Compensation Law: Up to $43,300 from $42,300.
- Temporary Disability and Family Leave Insurance: Up to $165,400 from $161,400.
For those seeking to qualify for benefits in 2025, eligibility criteria will rise slightly. Applicants must earn at least $303 per week (up from $283 in 2024) for 20 base weeks or meet an alternative earnings requirement of $15,200 annually (up from $14,200).
The minimum wage in New Jersey, which affects these calculations, will increase to $15.49 per hour on January 1, 2025, from its current rate of $15.13.
For local and state government entities opting to contribute rather than reimburse the trust fund for unemployment benefits, the contribution rate remains steady at 0.6% of taxable wages for the upcoming year.
These changes aim to ensure that New Jersey’s benefits keep pace with economic conditions while maintaining stability in the funding for these critical programs. Residents can expect updated resources from NJDOL to guide them through these changes in the new year.