TRENTON, December 28, 2017 – The New Jersey Department of Labor and Workforce Development today announced the annual changes in the maximum benefit rates and taxable wage base that will take place in 2018 for New Jersey’s Unemployment Insurance; Temporary Disability Insurance; Family Leave Insurance; and Workers’ Compensation programs.

Effective January 1, 2018, the maximum weekly benefit amount for eligible unemployment insurance claimants will increase from $677 to $681.  The maximum weekly benefit for state plan temporary disability insurance and family leave insurance claims will increase from $633 to $637, while the maximum weekly benefit for workers’ compensation will rise from $896 to $903.

According to laws governing these programs, the maximum benefit rates and the taxable wage base must be recalculated each year, based on the statewide average weekly wage.  The benefit rates and taxable wage base for 2018 reflect the $1,203.43 average weekly wage for 2016, which rose by 0.7 percent from $1,195.08 in 2015.

The level of wages subject to wage taxes in 2018 will increase to $33,700 under the unemployment, temporary disability and family leave insurance programs; as well as the Workforce Development Partnership Program; and Supplemental Workforce Fund for Basic Skills; the taxable wage base in 2017 was $33,500.

Benefit eligibility criteria are based on the State minimum hourly wage of $8.44 in effect as of October 1, 2017, and will therefore increase in 2018.  New Jersey’s minimum hourly wage rose from $8.38 to $8.44 as of January 1, 2017. The scheduled increase in the minimum wage to $8.60 on January 1, 2018 will not affect the benefit eligibility criteria for 2018. The amount of weekly earnings required to establish a base week in order to be eligible for unemployment, temporary disability, or family leave benefits under regular criteria will increase from $168 to $169 in 2018. The amount of earnings required in cases in which a claimant has not worked 20 base weeks will rise from $8,400 to $8,500.

The contribution rate for state and local government entities that choose to make contributions, rather than reimbursing the trust fund for unemployment insurance benefits paid to their former employees, will remain at 0.7 percent of taxable wages during calendar year 2018. Below is a chart showing the 2017 rates and the changes taking place January 1, 2018:

MAXIMUM BENEFIT RATES AND ELIGIBILITY CRITERIA