The New Jersey Department of Labor and Workforce Development (NJDOL) on Tuesday announced that maximum benefit rates will increase in 2025 for state unemployment insurance claims, temporary disability, family leave and workers’ compensation programs.
Increases to the maximum benefit rates and the taxable wage base, which is the level of employee wages that are subject to contributions under that law, take effect on Jan. 1.
In the new year, the maximum weekly benefit rate for unemployment insurance claims will increase to $875, up from $854. The maximum weekly benefit rate for state plan temporary disability and family leave insurance claims increases to $1,081, from $1,055; while the maximum weekly workers’ compensation benefit rate for temporary disability, permanent total disability, permanent partial disability and dependency rises to $1,159, from $1,131.
The maximum benefit rates and the taxable wage base are recalculated each year based on the statewide average weekly wage in the second preceding calendar year, in accordance with the laws governing these programs. The benefit rates and taxable wage base for 2025 reflect the $1,545.60 average weekly wage for 2023, which rose by 2.5% from $1,507.76 in 2022.
The taxable wage base for workers covered under the Unemployment Compensation Law increases to $43,300 in 2025 from $42,300 in 2024.
The taxable wage base for workers covered under the Temporary Disability Insurance and Family Leave Insurance programs increases to $165,400 in 2025 from $161,400 in 2024.
To qualify for Unemployment Insurance, Temporary Disability Insurance, or Family Leave Insurance benefits in 2025, an applicant must earn at least $303 per week (up from $283 in 2024) for 20 base weeks or alternatively earn at least $15,200 (up from $14,200 in 2024).
Benefit eligibility criteria (the base week and alternative earnings amounts) for 2024 were computed based on the state minimum wage in effect as of Oct. 1, 2024, when the minimum wage in New Jersey was $15.13 per hour for most employees. Effective Jan. 1, the minimum wage will rise by 36 cents to $15.49 per hour.
The contribution rate for state and local government entities that choose to make contributions rather than reimburse the trust fund for unemployment insurance benefits paid to their former employees, remains at 0.6% of taxable wages during calendar year 2025.
More information can be found on the DOL’s website here.
