NJ Announces Benefit and Wage Changes for 2025

Unemployment, Disability, and Family Leave benefits increase as New Jersey workers see adjustments to wage bases and minimum wage.

The New Jersey Department of Labor and Workforce Development (NJDOL) has announced its annual updates to benefit rates and wage bases, bringing higher payouts for unemployment, disability, and family leave benefits starting January 1, 2025. Along with these increases, workers will see slight adjustments in the minimum wage and taxable wage limits for the upcoming year.

What’s Changing in 2025?

Beginning in January, the maximum weekly benefit rates for Unemployment Insurance, Temporary Disability Insurance (TDI), Family Leave Insurance (FLI), and Workers’ Compensation are on the rise. These changes reflect an upward trend in the statewide average weekly wage:

• Unemployment Insurance: The maximum weekly benefit will increase to $875, up from $854 in 2024.
• Temporary Disability & Family Leave Insurance: Workers on disability or family leave will see the maximum weekly benefit rise to $1,081, up from $1,055.
• Workers’ Compensation: For temporary disability, permanent total disability, permanent partial disability, and dependency benefits, the maximum weekly payout climbs to $1,159, an increase from $1,131.

These adjustments are based on New Jersey’s average weekly wage, which rose by 2.5%, from $1,507.76 in 2022 to $1,545.60 in 2023.

Taxable Wage Bases Increase

The taxable wage base, the earnings threshold subject to contributions under New Jersey’s benefit programs, will also increase:

• Unemployment Compensation Law: Taxable wage base increases to $43,300, up from $42,300.
• Temporary Disability & Family Leave Insurance: Taxable wage base jumps to $165,400, up from $161,400.

For state and local government employers who contribute to the unemployment trust fund rather than reimburse benefits directly, the contribution rate remains steady at 0.6% of taxable wages for 2025.

Eligibility Thresholds Rise

To qualify for Unemployment Insurance, TDI, or FLI benefits in 2025, workers must meet updated income thresholds:

• Earn at least $303 per week for 20 base weeks (up from $283 in 2024), or
• Earn a minimum of $15,200 annually, up from $14,200.

These criteria are tied to New Jersey’s minimum wage, which will also see a slight bump.

Minimum Wage Update

Effective January 1, 2025, New Jersey’s minimum wage will increase by $0.36 to $15.49 per hour for most employees, up from $15.13. This rise reflects adjustments for inflation and is part of the state’s phased plan to maintain fair wages for workers.

Below is a chart showing the 2024 rates and the changes that will take effect January 1, 2025.

Why It Matters

The annual recalibration of benefit rates and wage bases ensures that safety net programs keep pace with inflation and the cost of living in New Jersey. With an average weekly wage that continues to climb, these updates offer vital financial relief to individuals facing unemployment, temporary disability, or the need for family leave.

As workers and employers adapt to these changes, the NJDOL encourages residents to stay informed about their eligibility and benefits. For more information, visit NJDOL's official website.

Whether you’re applying for unemployment benefits, taking family leave, or managing payroll, these updates ensure New Jersey remains committed to supporting its workforce into the new year and beyond.