State of New Jersey Department of Labor & Workforce Development
12/17/2024 | Press release | Distributed by Public on 12/17/2024 11:22
NJ Department of Labor and Workforce Development Announces New Benefit Rates for 2025
FOR IMMEDIATE RELEASE
December 17, 2024
TRENTON - The New Jersey Department of Labor and Workforce Development (NJDOL) today announced changes in the maximum benefit rates and taxable wage base for Unemployment Insurance, Temporary Disability Insurance and Family Leave Insurance, as well as a change in the maximum Workers' Compensation benefit rates for temporary disability, permanent total disability, permanent partial disability and dependency. Each of these changes to maximum benefit rates and taxable wage base will take effect on January 1, 2025.
In the new year, the maximum weekly benefit rate for Unemployment Insurance claims will increase to $875, 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 percent from $1,507.76 in 2022.
The taxable wage base for workers covered under the Unemployment Compensation Law, which is the level of wages that are subject to contributions under that 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, in those situations where the individual has not established 20 base weeks in the base year period, earn at least $15,200 up from $14,200 in 2024). Benefit eligibility criteria (the base week and alternative earnings amounts) for 2024 are computed based on the state minimum wage in effect as of October 1, 2024, when the minimum wage in New Jersey was $15.13/hour for most employees. Effective January 1, 2025, the minimum wage will rise by $0.36 to $15.49.
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 percent of taxable wages during calendar year 2025.
Below is a chart showing the 2024 rates and the changes that will take effect January 1, 2025.
|
Maximum Benefits Rates and Eligibility Criteria |
||
|
2024 |
2025 |
|
|
Maximum Unemployment Insurance (UI) Weekly Benefit Amount |
$854 |
$875 |
|
Maximum Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) Weekly Benefit Amount |
$1,055 |
$1,081 |
|
Maximum Workers' Compensation Weekly Benefit Amount |
$1,131 |
$1,159 |
|
Taxable Wage Base (UI - workers, employers; TDI - employers) |
$42,300 |
$43,300 |
|
Taxable Wage Base (TDI/FLI - workers only) |
$161,400 |
$165,400 |
|
Base Week Amount |
$283 |
$303 |
|
Alternative Earnings Amount |
$14,200 |
$15,200 |
|
UI Government Entities Contribution Rate |
0.6% |
0.6% |
For more information, visit nj.gov/labor.