Vincent Schweikert Chief Marketing Officer & Publisher | New Jersey Business & Industry Association
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New Jersey Review | Dec 17, 2024

New Jersey announces increased benefit rates for unemployment and other programs in 2025

The New Jersey Department of Labor and Workforce Development (NJDOL) has announced that maximum benefit rates for state unemployment insurance claims, temporary disability, family leave, and workers’ compensation programs will increase in 2025. These changes, including adjustments to the taxable wage base, will take effect on January 1.

In 2025, the maximum weekly benefit rate for unemployment insurance claims will rise to $875 from $854. For state plan temporary disability and family leave insurance claims, the rate will increase to $1,081 from $1,055. The maximum weekly workers’ compensation benefit rate for various disabilities and dependency will go up to $1,159 from $1,131.

These adjustments are based on the statewide average weekly wage in the second preceding calendar year. For 2025, they reflect a 2.5% increase in the average weekly wage for 2023 compared to 2022.

The taxable wage base under the Unemployment Compensation Law will increase to $43,300 in 2025 from $42,300 in 2024. Similarly, for Temporary Disability Insurance and Family Leave Insurance programs, it will rise to $165,400 from $161,400.

To qualify for benefits in these programs in 2025, applicants must earn at least $303 per week or alternatively earn at least $15,200 annually. This is an increase from previous requirements of earning at least $283 per week or an annual amount of at least $14,200.

Eligibility criteria were calculated based on New Jersey's minimum wage as of October 1st when it was set at $15.13 per hour. Starting January 1st next year, this minimum wage will be increased by 36 cents to reach $15.49 per hour.

For state and local government entities opting to contribute rather than reimburse the trust fund for unemployment benefits paid out to former employees during calendar year 2025; their contribution rate remains unchanged at 0.6% of taxable wages.

Further details can be accessed through NJDOL’s official website.

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