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.
The benefit rates and taxable wage base for 2026 reflect the $1,598.66 average weekly wage for 2024, which rose by 3.4% from $1,545.60 in 2023.
The taxable wage base for workers covered under the Unemployment Compensation Law, which is the level of wages that are subject to contributions under that law, increases to $44,800 in 2026 from $43,300 in 2025.
The taxable wage base for workers covered under the Temporary Disability Insurance and Family Leave Insurance programs increases to $171,100 in 2026 from $165,400 in 2025.
To qualify for unemployment insurance, temporary disability insurance or family leave insurance benefits in 2026, an applicant must earn at least $310 per week (up from $303 in 2025) for 20 base weeks, or alternatively, in those situations where the individual has not established 20 base weeks in the base year period, earn at least $15,500 (up from $15,200 in 2025).
Benefit eligibility criteria (the base week and alternative earnings amounts) for 2026 are computed based on the state minimum wage in effect as of October 1, 2025, when the minimum wage in New Jersey was $15.49/hour for most employees.
Effective January 1, 2026, the minimum wage will rise by $0.43 to $15.92.
The contribution rate for state and local government entities that choose to make contributions rather than reimburse the trust fund for unemployment insurance benefits paid to their former employees decreases to 0.5% of taxable wages during calendar year 2026 from 0.6% in 2025.
