Important Update From the NJDOL:
Changes to Maximum Benefit Rates and Taxable Wage Base for Workers
This year, New Jersey workers celebrated the New Year with an increased minimum wage by 43 cents to $15.92 per hour on Jan. 1, under the state’s law.
For over a decade, the New Jersey State AFL-CIO fought for working families to create a solution to rising poverty levels, growing income inequality, and heightened barriers to climbing the ladder of opportunity in New Jersey. With the help of their affiliates and allies, such as Working Families United for New Jersey, The New Jersey State AFL-CIO spearheaded a successful campaign to “Raise the Wage” in New Jersey, securing a constitutional amendment in November 2013 that raised the minimum wage by a dollar and mandated automatic annual increases tied to the Consumer Price Index (CPI), to take effect each year on January 1st. This amendment has played an instrumental role in setting a precedent for an automatic cost-of-living increase, and eventually raising the minimum wage to $15.
As a result of the New Jersey State AFL-CIO’s efforts, the success of this campaign continues to positively impact workers today. Recently, the New Jersey Department of Labor and Workforce Development (NJDOL) 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 the taxable wage base will take effect on January 1, 2026.
In the new year, the maximum weekly benefit rate for unemployment insurance claims will increase to $905, from $875. The maximum weekly benefit rate for state plan temporary disability and family leave insurance claims increases to $1,119, from $1,081, while the maximum weekly workers’ compensation benefit rate for temporary disability, permanent total disability, permanent partial disability and dependency rises to $1,199, from $1,159.
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.
We hope that this information is helpful, and that you have a happy and healthy New Year. Solidarity, no matter what!