TRENTON, December 28, 2010 –Commissioner Harold J. Wirths, of the New Jersey Department of Labor and Workforce Development today announced the 2011 annual changes in the maximum benefit rates and taxable wage base for New Jersey’s Workers’ Compensation and the Unemployment, Temporary Disability and Family Leave Insurance programs.

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 2011 are based on the average weekly wage for 2009, which decreased by 0.3 percent to $1,056.54 from $1,059.29 in 2008.  This is the first time that the average weekly wage has decreased in more than 40 years of record keeping.

Effective January 1, 2011, the maximum weekly benefit amount for eligible unemployment insurance claimants will decrease from $600 to $598.  The maximum weekly benefit for State Plan temporary disability insurance and family leave insurance claims will decline from $561 to $559, while the maximum weekly rate for workers’ compensation will fall from $794 to $792.

Wages subject to taxation 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, will decrease to $29,600 in 2011 from the 2010 level of $29,700.

Benefit eligibility criteria that are based on the State minimum hourly wage will remain the same in 2011 because they are based on the same minimum hourly wage of $7.25 per hour which became effective on July 24, 2009.  The amount of earnings required to establish a base week in order to be eligible for unemployment, temporary disability or family leave benefits under regular criteria will remain at $145 in 2011, while the amount of earnings required in those cases in which a claimant has not worked 20 base weeks will remain at $7,300.

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 increase from 0.6 percent to 0.7 percent of taxable wages during calendar year 2011.

Below is a chart showing the 2010 rates and the changes taking place January 1, 2011: